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27 Apr 2016
AUD/USD bulls piped up ahead of CPI's
AUD/USD found a bid on commodity prices in the U.S. shift and the price moved through the 50 and 200 smas on the 4hr charts as a bullish signal for the forthcoming sessions in Asia.
Oil, gold and industrial metals rallied supporting the recovery in the Aussie. "Iron ore prices remain well above the 2015 average, while pricing for an RBA rate cut next week should not move much after Q1 CPI," explained analysts at Westpac. Meanwhile, for today's session, in Australia, the quarterly CPI, with a consensus of +0.2 and +1.7% YoY, will be released. For tonight, we have the Fed's decision.
AUD/USD ahead of Central Bank risk
"We look for the USD to emerge softer from the FOMC meeting and US Q1 GDP, while any BoJ policy change this week should support risk appetite. All up, this should leave AUD/USD pushing back above 0.78 over the week, having found support on any dips towards 0.76," added the analysts at Westoac, "Over the next month or so, AUD/USD could probe above 0.80, without altering our expectation that it will be back to 0.74 by September."
AUD/USD levels
The 18th April hit the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836. The bearish bias then took a hold and a breakdown of the bulls commitments on the 0.77 handle took out the 50 4hr sma at 0.7743. That has now been recovered and before the bears managed to get a hold of the mid-March high at 0.7680 ahead of the two-month support line that can be seen at 0.7656. For today, the 0.78 handle is a key psychological target ahead of the outcome of the Fed.
Oil, gold and industrial metals rallied supporting the recovery in the Aussie. "Iron ore prices remain well above the 2015 average, while pricing for an RBA rate cut next week should not move much after Q1 CPI," explained analysts at Westpac. Meanwhile, for today's session, in Australia, the quarterly CPI, with a consensus of +0.2 and +1.7% YoY, will be released. For tonight, we have the Fed's decision.
AUD/USD ahead of Central Bank risk
"We look for the USD to emerge softer from the FOMC meeting and US Q1 GDP, while any BoJ policy change this week should support risk appetite. All up, this should leave AUD/USD pushing back above 0.78 over the week, having found support on any dips towards 0.76," added the analysts at Westoac, "Over the next month or so, AUD/USD could probe above 0.80, without altering our expectation that it will be back to 0.74 by September."
AUD/USD levels
The 18th April hit the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836. The bearish bias then took a hold and a breakdown of the bulls commitments on the 0.77 handle took out the 50 4hr sma at 0.7743. That has now been recovered and before the bears managed to get a hold of the mid-March high at 0.7680 ahead of the two-month support line that can be seen at 0.7656. For today, the 0.78 handle is a key psychological target ahead of the outcome of the Fed.