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28 Jul 2015
AUD/USD drifting towards offer territory
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7337 with a high of 0.7345 and a low of 0.7257.
AUD/USD has managed a bid on the back of rising metals on the LME, with Copper bouncing back of yearly lows. Benchmark copper on the London Metal Exchange was up more than 1 percent at $5,255 a tonne at 1057 GMT. This was a vast improvement from $5,188 of the close on Monday, when the metal hit a six-year low at $5,164 on the back of the downside pressures in the Chinese stock market and economy.
Last week's weak manufacturing survey has also been reinforcing the unease. Meanwhile Gold is up from the weakest level since 2010 but it is not out of the woods yetas investors anticipate a rate hike from the Fed before the year is out, which could be a reason that the yellow metal isn't getting much love, despiteits usual safe haven status as the uncertainty mounts in a risk-off environment that surrouns China.
Meanwhile, the FOMC is coming up tomorrow and the dollar could continue to garner support on this given that markets are aligning to a rate hike in September from the Fed. However, this does not necessarily mean that this will be indicated as a certainty in tomorrow's accompanying statement and the dollar could come under pressure if overbought leading into the meeting and subsequent announcements.Markets will be looking for a bullish case for the US economy, despite today's disappointment in the consumer confidence numbers while yesterday's durable goods orders were robust and beat expectations. AUD/USD is up from 0.7257 but AUS/USD may be a sell on rallies with offers lined up through 0.7340/80 and above within a highly bearish downtrend.
AUD/USD technically bearish
Technically, the charts look gruesomely bearish for AUD/USD. Rabobank FX Strategy Team notes that the AUD/USD should remain vulnerable, lowering the forecast towards 0.71 by year-end.
Karen Jones, chief analyst at Commerzbank explained that AUD/USD held steady yesterday and the recent low has been accompanied with a divergence of the daily RSI.
AUD/USD has managed a bid on the back of rising metals on the LME, with Copper bouncing back of yearly lows. Benchmark copper on the London Metal Exchange was up more than 1 percent at $5,255 a tonne at 1057 GMT. This was a vast improvement from $5,188 of the close on Monday, when the metal hit a six-year low at $5,164 on the back of the downside pressures in the Chinese stock market and economy.
Last week's weak manufacturing survey has also been reinforcing the unease. Meanwhile Gold is up from the weakest level since 2010 but it is not out of the woods yetas investors anticipate a rate hike from the Fed before the year is out, which could be a reason that the yellow metal isn't getting much love, despiteits usual safe haven status as the uncertainty mounts in a risk-off environment that surrouns China.
Meanwhile, the FOMC is coming up tomorrow and the dollar could continue to garner support on this given that markets are aligning to a rate hike in September from the Fed. However, this does not necessarily mean that this will be indicated as a certainty in tomorrow's accompanying statement and the dollar could come under pressure if overbought leading into the meeting and subsequent announcements.Markets will be looking for a bullish case for the US economy, despite today's disappointment in the consumer confidence numbers while yesterday's durable goods orders were robust and beat expectations. AUD/USD is up from 0.7257 but AUS/USD may be a sell on rallies with offers lined up through 0.7340/80 and above within a highly bearish downtrend.
AUD/USD technically bearish
Technically, the charts look gruesomely bearish for AUD/USD. Rabobank FX Strategy Team notes that the AUD/USD should remain vulnerable, lowering the forecast towards 0.71 by year-end.
Karen Jones, chief analyst at Commerzbank explained that AUD/USD held steady yesterday and the recent low has been accompanied with a divergence of the daily RSI.