FXstreet.com (Barcelona) - The Aussie dollar has eroded all its gains made after the RBA left the overnight rate unchanged at 3.50%. The bank commanded by G.Stevens has considered for such a decision the grim outlook in the euro bloc, a modest growth in the US and recent soft results in China could undermine the economic activity in the region.
A.L.Rasmussen, Chief Analyst at Danske Bank, explains “the recovery from the 1 June low at .9581 reached a peak of 1.0615 on 9 August before the current pullback ensued. This corrective easing appears to be close to exhaustion and scope for a rebound is increasing as the market probes the tentative lower channel boundary at 1.0288”. The expert suggested that abreak above 1.0399/0411 would open the door to further upside with the immediate target at 1.0546 en route to 1.0615, and if the impulse grows bigger, even the 2012 highs at 1.0857 could be revisited.
A.L.Rasmussen, Chief Analyst at Danske Bank, explains “the recovery from the 1 June low at .9581 reached a peak of 1.0615 on 9 August before the current pullback ensued. This corrective easing appears to be close to exhaustion and scope for a rebound is increasing as the market probes the tentative lower channel boundary at 1.0288”. The expert suggested that abreak above 1.0399/0411 would open the door to further upside with the immediate target at 1.0546 en route to 1.0615, and if the impulse grows bigger, even the 2012 highs at 1.0857 could be revisited.
