Wednesday, November 4, 2015

AUD/USD was marginally bid on retails sales

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7190 with a high of 0.7196 and a low of 0.7178.

AUD/USD is currently supported and better bid on the back of the retails sales figures that came in line with expectations at 0.4% m/m. The report will be a key element to the RBA's decision making process in respect of the December meeting.

The RBA left interest rates on hold for the time bieb g but there was a hint of dovishness this time around in the statement and when Stevens left the door open for further easing, but also noted that “prospects for an improvement in economic conditions had firmed a little.” So the market is cautiously bullish on the Aussie and will be monitoring the performances of China and indeed how close the Fed can be to raising rates, perhaps in December.

AUD/USD levels

Technically, AUD/USD is putting bears commitments at 0.72 handle under threat, an area that the bulls have struggled within the rising trend while headwinds and pressures are stemming from the 0.7385 Fibo retracement of the 2014-2015 downtrend and early October highs.

To the downside, on a reversal, on say positive ADP report, falling commodity prices and/or hawkish Fed speak tomorrow from Stanley, Dudley and Yellen, 0.7066 is key on a break below the 0.71 handle. This area of support guards the medium term target for the September lows at 0.6940 with 0.6774 2004 low on the wide.
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