AUD/USD: remains in consolidation in wide range

By FXStreet AUD/USD ‘s recovery of the 2015 downtrend has stalled and was capped at the end of March’s business on the 0.77 handle and recently made a fresh low of 0.7491. However, demand for the Aussie picked up at the end of last week as the greenback took a tumble and oil prices recovered back to $40 WTI at the end of the US Friday session last week.

Commodities major role in the FX space

Oil has opened higher at start the week off which should under pin a recovery in the Aussie, however, there have been weekend reports in the Australian press that a rate cut could be around the corner. The market is currently pricing in a 30% chance of a rate cut on May 3 when the RBA next meets.

However, the demand still wasn’t enough to pull the Aussie out of negative territory for the week within the broader consolidation between 0.7415 and 0.7722. Valeria Bednarik, chief analyst at FXStreet explained that having closed the week near this last, the daily chart shows that the price remains above the 23.6% retracement of its latest bullish run, whilst the technical indicators hover within neutral territory, unable to …read more

Source:: FX Street