Technical Analysis

Australia Monetary Policy meeting minutes to be released in the new day

RBA Gov. Lowe will also speak

In the new trading day, the RBA Gov. Lowe will be speaking at 6 PM ET/2200 GMT. He is due to speak at the Australian Securities and Investments Commission event in Canberra. 

Later the RBA will release the Monetary Policy Meeting minutes.  The RBA kept rates unchanged at 1.5% on August 7th.  

Governor, Philip Lowe affirmed that interest rates are more likely to rise next than fall.  He added that the economy is slowly transitioning toward higher inflation and lower unemployment but that there is no pressure on the RBA to come off the sidelines any time soon. 

The AUDUSD moved higher and reached a high of 0.7452 on August 9th.

Since then, the price moved lower, bottoming at 0.72018 last Wednesday. 

Currently, the price is tracking higher and just moved  to new session highs and above the 50%. The push was helped by the Trump comments about the Fed.  

The move higher today, did reach above the 200 hour MA his afternoon at 0.7290. That is around the 38.2% of the move down from the August 9th high. 

If Lowe and the minutes are more dovish/less hawkish, that MA line and 38.2% retracement will be eyed.  Get below would be more bearish.  A closer clue would be the just broken 50%.  A break below may turn the buyers back to sellers, but it will need to take a break below the 200 hour MA to get things moving back lower.

Absent that, and the 61.8% at 0.73568 would be the next target to get to and through on the topside. 

ForexLive

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