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


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes