AUD/USD's NY cut was compelling given the sheer size of option strikes at 0.72 the figure. 6 yards were at that strike and the price was driven higher and through the level as suggested by us yesterday as a possibility. But now where?
Fundamentally, AUD/USD has been bought into on positive vibes from the RBA who are not about to cut rates in a hurry and leave the bar high, allowing for economics to run their course expecting that the nation's jobs sector, exchange rate and services to support the economy against the overseas headwinds from China.
More on that was written here yesterday, offering some caution to such a strategy and allowing the possibility for a tactical cut in time to come from the RBA. However at the same time, the greenback is being setback on US job's market and the Fed that is likely to hold off from hiking interest rates.
AUD/USD bullish/neutral ( RSI offers upside potential, 50 DMA left for dust)
The price remains below the descending resistance line on the daily chart, but significantly breached the highs of 5th cot at 0.7130 and then the 50 DMA at 0.7168 with the 20 DMA tracking the upside trend of late, turning bullish. On the hourly chart, RSI (14) has room to go still as well targeting base of the cloud at 0.7230 and R2 at 0.7246. Karen Jones, chief analyst at Commerzbank explained, "A move above the September high at 0.7279 is needed to negate downside pressure and re-target the 0.7448 July 21 high."
For a less bullish analyses for the immediate future, see here.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.