AUD/USD: RBA's Lowe not rocking the boat, yet...comments so far included

Ross J Burland FXStreet

Currently, AUD/USD is trading at 0.7864, down -0.14% on the day, having posted a daily high at 0.7877 and low at 0.7860.

AUD/USD is stabilising in the high 0.78s after the extension from the 26th July 0.8008 highs met demand down at 0.7855 at the start of this week. The minor correction has made a high of 0.7910 so far, but risk off pressures that do not benefit the carry and higher beta currencies capped the bulls there for the time being.

AUD/USD 1-3 month:

Analysts at Westpac explained that if the RBA remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end.

For the events ahead for the rest of the week, we have RBA Governor Phillip Lowe speaking currently and US CPI. RBA's Lowe is testifying before the House of Representatives’ Standing Committee on Economics in Melbourne. Markets are waiting to hear if he jawbones AUD and shows concerns about the strength of the Aussie.

Comments so far:

Global economy has strengthened since last meeting
China growth has surprised on upside of late
Global economy has strengthened since Feb.
RBA working closely with APRA on financial risks
Measures will work to strengthen household b/s
Investment ex-resources pickup taking longer than expect.
More AUD gains would slow inflation pickup
Likely to be some time before reach full employment
Says cash rate at 1.5% supporting jobs growth
Further AUD gains would slow inflation pickup, employment
Says board prepared to be patient

AUD/USD levels

AUDUSD: The dailies are looking increasingly negative

Valeria Bednarik, chief analyst at FXStreet explained that, technically, the 4 hours chart shows that the price remained contained by a bearish 20 SMA, still retreating on spikes towards the dynamic resistance, now at 0.7900, while technical indicators are neutral-to-bearish within negative territory, maintaining the risk towards the downside. "The weekly low stands at 0.7855, the level to break to confirm further declines towards 0.7785, July 18th daily low," she added.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.