AUDUSD, Daily
The RBA cut its forecast for underlying inflation in 2016 to 1-2% from 2-3% in the Statement on Monetary Policy. The Bank’s forecasts for growth and the labour market were little changed from the February Statement on Monetary Policy. Further rate cuts look likely this year amid increased risk that inflation expectations remain persistently lower for longer than the Bank currently expects. AUDUSD fell 0.8% to 0.7400 from 0.7460 as the Australian dollar lost value against the U.S. dollar following the release of the Statement.
I last updated the AUDUSD pair April 27th before the RBA meeting last week and the rate cut and last night’s reduction in the inflation target. My headline then was “Australia Where has the inflation gone?” yesterday’s announcement cemented my thoughts. I also suggested that the 0.7450 level was a key support level; this was robustly and significantly broken in the last 24 hours.
Technically we now have Daily support and downside Target 1 at 0.7330 – the 50% Fib level, which also coincides with the Weekly retracement levels. Further down we have 200 DMA, support and Target 2 at 0.7260. The monthly chart turned down during April and shows support at 0.7050 and 0.7000.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.