AUD/USD: bearish long term outlook; 0.8600?

Ross J Burland FXStreet

FXStreet (Guatemala) - AUD/USD is trading at 0.9343, up 0.03% on the day, having posted a daily high at 0.9354 and low at 0.9324.

AUD/USD has been quite resilient of late, how every, while official Capex data should bolster the mood of the policy makers, Jane Foley Senior Currency Strategist at Rabobank suggested that it is clear that headwinds still cloud the outlook and this suggests risk that the RBA could again attempt to jawbone the AUD to lower levels. “That said, the AUD is still seen as offering positive carry and we expect that this will limit downside potential in AUD/USD near-term. Over the coming 3 mth we expect the AUD/USD 0.92 to 0.93 to contain most activity. On a 12 mth view, we look for a move towards 0.86. This assumes a broad based recovery for the USD as the first hike in the Fed funds rate near”.

AUD/USD hourly levels

Spot is presently trading at 0.9343, and next resistance can be seen at 0.9345 (Daily Classic PP), 0.9354 and 0.9360 (Daily Classic R1). Support below can be found at 0.9343 (Hourly 20 EMA), 0.9341 (Daily 100 SMA), 0.9339 (Hourly 100 SMA), and 0.9329 (Weekly Classic PP).

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.

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