AUD/USD: Favour buying dips – OCBC
|Australian Dollar (AUD) slipped post-RBA yesterday, but dip was brief. Pair was last at 0.6549 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Bias remains to buy dips
"A softer USD post-US CPI saw AUD reclaimed 0.65-handle. On RBA, Governor Bullock’s press conference did not indicate any major shift in policy bias. She did say that further moves (referring to cut) are possible if data warrants but she also said that larger cut was not discussed at the meeting. From a FX point of view, RBA is cutting rate from a position of stability not distress."
"Bias remains to buy dips. Bearish momentum on daily chart faded while RSI rose. Resistance at 0.6550, 0.66 levels. Support at 0.65, 0.6430 levels. Week remaining brings labour market report (Thursday)."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.