The AUDUSD pair has been extremely volatile for the month of April making the 18 months high for the month. AUD started rising at 0.9150 for the month reached at the high of 0.9386 (18 Month’s High) currently trading at 0.9386. This month’s Reserve Bank of Australia (RBA) decision to increase the rate hike to combat the inflation was in expected lines for the AUD. The contribution to the volatility was the Goldman Sachs storm which had an impact on the currency pair inline with other majors. On the other hand the Australia’s Westpac’s leading economic indicator rose highest in 1 //2 years from 0.4% to expected figure of 0.5%. The Australian Producer’s price Index which is a leading indicator of Consumer Inflation was expected at 0.7% but came out at 1% from the previous figure of -0.4%. The Australian Central bank’s Governor Glenn Stevens indication on interest rate hike could be on the cards which could be worrisome for the inflation ridden economy. But the RBA’s confidence on the strong Asian partner China, which is the largest importer of its mining activities could boost further trading activities for the economy.
From the technical perspective, the pair seems to be nearing the support with Relative Strength Index (RSI) approaching 30 and could be good point of comeback for the pair. On the Fibonacci level’s it has currently been trading at more than 50.00% of the upward movement, if it breaks the 61.8% level 0.9222, there could be further downside in the pair with next support at .098162. The Australian Consumer Price Index, New Home Sales data and the Private Sector Credit could determine the further move for the currency pair.
Mohammed Rabbani
No comments:
Post a Comment