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19 Feb 2013
Forex: AUD/USD consolidating above 1.0300
The Australian dollar is navigating the upper end of today’s range so far, propped up by a less dovish tone from the RBA minutes. The central bank noted that previous rate cuts are starting to show their effects on the economy, although it showed concern regarding the level of the AUD.
“In our view, the RBA is not a long way off another cut but will need to see evidence that either the recent positive signs are fading or that the upturn in housing, consumption and non-mining investment is too weak to sustain the economy at a growth rate approaching trend… Our forecast of a couple of cuts mid-year and one later in the year sits well with this prognosis”, assessed Robert Henderson, Chief Economist at NAB.
As of writing, the cross is up 0.22% at 1.0329 facing the next hurdle at 1.0375 (high Feb.15) en route to 1.0400 (high Feb.6).
On the other hand, a breach of 1.0270 (hourly high/lows Feb.12) would expose 1.0225 (Lower Bollinger) and then 1.0203 (low Oct.15).
“In our view, the RBA is not a long way off another cut but will need to see evidence that either the recent positive signs are fading or that the upturn in housing, consumption and non-mining investment is too weak to sustain the economy at a growth rate approaching trend… Our forecast of a couple of cuts mid-year and one later in the year sits well with this prognosis”, assessed Robert Henderson, Chief Economist at NAB.
As of writing, the cross is up 0.22% at 1.0329 facing the next hurdle at 1.0375 (high Feb.15) en route to 1.0400 (high Feb.6).
On the other hand, a breach of 1.0270 (hourly high/lows Feb.12) would expose 1.0225 (Lower Bollinger) and then 1.0203 (low Oct.15).