AUD/USD scrummaging with the 0.72 handle

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7201 with a high of 0.7240 and a low of 0.7181.

AUD/USD is oscillating around the 0.7200 level below the 1hr 20 SMA and threatens the downside while recoveries are rejected at the 50/55 SMA cluster, targeting 0.7180 and south. The minor recovery in the price of AUD/USD came in the wake of the ECB and stocks getting another wind on the basis of further easing and prolonged periods of low inflation and lower oil prices offering risk appetite flows into the Aussie and higher yielders as the German 2yr yields dropped to the lowest of record.

We had the interest rate decision with the ECB staying on hold as widely expected. The main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%. Analysts at TD Securities explained, “we think a cut of 15-20bps in December is now likely, with an outside chance of a further 20bps of easing beyond that. This means that at a minimum, fair value for schatz should be around the –45 to 50bps range.””

AUD/USD levels

Technically, the key levels are still with the 0.7385 Fibo retracement that is guarding …read more

Source:: FX Street