AUD/USD: worst of a bad bunch, targeting 100 DMA
By FXStreet AUD/USD is the worst of the bunch on the back of the RBA’s downgrading of their inflation outlook by 1% and leaving the idea open that more interest rate cuts could be on the way.
Prior to the recent rate cut from the RBA, the Aussie had enjoyed almost a year of steady rates and a more bullish tone in the Aussie economy than the rest of the world. However, sentiment is turning ahead of the next RBA policy meeting on the June 7. “Of course, AUD promptly weakened over 1% and traded below 0.7400 for the first time since early March. It has now retraced nearly half of this year’s rally, with retracement objectives coming in near 0.7330 (50%) and then 0.7210 (62%), ” explained analysts at ANZ.
For the week ahead, the bad ADP report in the U.S. last week and then a poor nonfarm payrolls headline could trickle through and support the Aussie in an otherwise bearish climate, along with a bullish gold market. We will also be listening closely to the various Fed members due to speak this week (Evans, Kashkari, Dudley, Rosengren, George and Williams). Elsewhere, we will look to China with …read more
Source:: FX Street
