Aussie cross action about to pick up ?

[SYDNEY] The Australian dollar stood near two-year highs on Monday while its New Zealand counterpart was within kissing distance of an almost 11-month peak against an unloved greenback.

The Australian dollar was up 0.1 per cent at US$0.7919, not far from Thursday’s peak of US$0.7992 – a level last seen in May 2015. Key chart support lies at Friday’s low of US$0.7875.

It climbed 1.1 per cent last week, adding to gains of nearly 3 percent the previous week.

The Aussie had looked set to breach stiff chart resistance of 80 US cents last week, but the Reserve Bank of Australia (RBA) on Friday poured cold water on hawks who were wagering on a rate increase over the near term.

Deputy Governor Guy Debelle gave the clearest signal yet that policy rates were set to remain at record lows of 1.50 per cent for a while.

“RBA’s Debelle burst the AUD bulls’ balloon on Friday,” said Stephen Innes, head of APAC trading at OANDA. “We could see a further washout of the short-term long AUD positioning. But with a sagging greenback, it’s best to express any Aussie negative bias through the crosses.”

Business Times via Reuters Sydney

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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