fundamental News - AUD/USD
The cautious policy stance of the Reserve Bank of Australia (RBA) is set
to cap further AUD gains. However, economists at Rabobank have upgraded
their three-month AUD/USD forecast to 0.72 based on higher commodity
prices.
expectation today: neutral
RBA not to veer from its dovish position
“Although higher prices for exports such as coal and LNG should
continue to provide the aussie with support near-term, barring any
change in the RBA’s guidance that rates are likely to be on hold until
2024, we expect the AUD to struggle to maintain recent
gains vs. the USD.”
“While we expect the dovish tone of the RBA to keep the value of
AUD/USD in check into next year and beyond, based on the strength of
Australian resource and energy exports we have revised up our
three-month AUD/USD forecast from 0.71 to 0.72.”
Technical analysis
The four-hour chart shows that the AUD/USD pair rose sharply in the
past few days. It has risen above the 20-period and 50-SMA. At the same
time, it has formed a rising wedge pattern that is shown in green. This
pattern is usually a bearish signal. The
MACD has also been rising.
Therefore, with the wedge nearing its confluence zone, there is a
likelihood that the pair will break out lower. If this happens, the next
key support level to watch will be at 0.7300.