Aussie Crushed, AUD/USD Nears .6700

Aussie Crushed, AUD/USD Nears .6700

Australian Greenback Speaking Factors:Australian Dollar weak spot has come again as one of many clearer 2020 FX tendencies. AUD/U

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Australian Greenback Speaking Factors:

  • Australian Dollar weak spot has come again as one of many clearer 2020 FX tendencies.
  • AUD/USD is now nearing an enormous batch of assist across the .6700 deal with.
  • Aussie CPI is due later this week, and subsequent week brings the RBA. Will they lower?

Aussie Slammed to Contemporary 2020 Lows; CPI, RBA Coming Up

The Australian Greenback got here into the New 12 months clinging to a really seen bullish development. Whereas the foreign money had a slightly tough first 9 months of final 12 months, AUD/USD set a low simply after the This fall open and value motion continued to push-higher thereafter, setting a recent five-month-high on the ultimate buying and selling day of 2019. That marked a 50% retracement of the prior sell-off that began in December of 2018 and spanned to that recent 10-year-low set on October 2nd; and given a backdrop of weak spot within the US Dollar, it appeared as if a deeper bullish transfer may maintain as longer-term quick positions have been additional squeezed out of the market.

That didn’t occur; as an alternative, the RBA opened the door to price lower potentialities shortly after the New 12 months open, and sellers got here again into AUD/USD, with aggression, to push costs again right into a down-trend. That sell-off has been ongoing ever since and now AUD/USD is testing a recent three-month-low.

AUD/USD 4-Hour Value Chart

audusd four hour price chart

Chart ready by James Stanley; AUDUSD on Tradingview

Aussie within the Highlight for CPI Launch, RBA Price Choice

Odds for a February lower out of the RBA have softened of latest, helped by some positive employment data. However expectations stay for the financial institution to chop sooner or later this 12 months with the massive query being considered one of ‘when.’ A little bit of readability could present on that entrance within the subsequent week as tomorrow’s CPI launch leads into the RBA price choice on the calendar for subsequent Monday (subsequent Tuesday morning in Australia).

From a value motion perspective – the massive query is whether or not sellers can encroach upon the .6700 degree that proved so troublesome to interrupt final 12 months. This marks the decade-lows in AUD/USD at ranges not traded at for the reason that restoration from the Monetary Collapse. Sellers tried to push costs via that assist on 4 separate events from August to October of final 12 months, every time failing.

AUD/USD Every day Value Chart

audusd daily price chart

Chart ready by James Stanley; AUDUSD on Tradingview

Change in Longs Shorts OI
Daily12%-3%8%
Weekly11%-25%-2%

AUD/USD Technique Shifting Ahead

I’ve been following the short-side of AUD/USD of latest as one of many extra enticing autos for USD-strength. However now that costs are pushed down in direction of a key space of assist, continuation in that theme could possibly be a problem, particularly contemplating that we’ve to attend for every week to get to that highly-awaited RBA price choice.

This will preserve the door open for lower-high resistance within the effort of buying and selling shorter-term tendencies down in direction of that .6700 assist space. Such an space of potential for lower-high resistance exists at a batch of prior short-term assist, taken from the approximate .6823-.6846. A maintain of resistance right here opens the door for short-side eventualities.

AUD/USD Two-Hour Value Chart

audusd aud/usd two hour price chart

Chart ready by James Stanley; AUDUSD on Tradingview

— Written by James Stanley, Strategist for DailyFX.com

Contact and observe James on Twitter: @JStanleyFX



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