The Australian Dollar, ” Talking Points
The AUD/USD trades to a fresh monthly high, following the The Reserve Bank of Australia (RBA) interest rate decisionand the exchange rate may attempt to test the 2020 high (0.7032) than the Relative Strength Index (RSI) is in overbought territory.
AUD/USD-Forecast: by 2020, High on the Radar as the RSI is in the Overbought Zone
The Australian Dollar has been outperformed by all of its major counterparts in Mayand the upward trend of behavior that can persist in June, as the RBA keeps the official cash rate (OCR) at a record-low 0.25%, and tames the speculation for more monetary support.
It seems that the RBA will continue to modify the advice to be as if the update of the Q1 Gross Domestic Product (GDP) the report marks the end of Australia the record period of economic growth as the central bank insists on the fact that it “it is possible that the depth of the recession will be less than previously expected.”
The comments suggest that the RBA has yet to decide on a V-shaped recovery, as tit is substantial, coordinated and unprecedented easing of monetary and fiscal policy in Australia, which is helping the economy through this difficult period” and I have to Philip Lowe and Co. seem to be on the right track to carry out a wait-and-see approach throughout the remainder of the year they, that Council will not increase the cash rate target until the progress made towards full employment and that it is confident that inflation will be sustainable in 2 to 3 per cent target band.”
However, the RBA has noted, “that It, it is likely that the fiscal and monetary support will be needed for some time” in the middle of the gradual process of the re-opening of the Australian economy, and the threat of a tight, recovery may put pressure on the central bank to deploy more unconventional measures, such as stimulus programs, such as the Jobkeeper Bill is set to expire on September, 27.
In turn, the Australian Dollar is likely to face headwinds if the RBA comes with a dovish forward guidance, but the current market conditions may keep AUD/USD afloat at the The Federal Reserveprepares-to-have-the City of the Liquidity Facility, along the Main Street of Loan Program is up and running in the field of June.
That said, the Australian Dollar may continue to outperform its major counterparts in June, as the RBA continues to leave the dovish forward-guidance for monetary policy, and a break above the February high (0.6774) can stimulate a race to the horizon 2020 high (0.7032) than the Relative Strength Index (RSI) is in overbought territory.
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The AUD/USD Rate-Daily Chart
Source: The Negotiation Of The View
- Keep in mind, the value of the opening area it has been a key dynamic for the AUDUNITED states in the fourth quarter, or 2019, as the exchange rate is sculpted, a major low on October 2with the the high for the month of November, occurring during the first full week of the month, while the low for the month of December materialized on the first day of the month.
- The the opening area for 2020 showed a similar scenario, as the AUD/USD market is the most high of the month on 2 January and, with the exchange rate is the sculpture of the month of January high during the first week of the month.
- However, the opening area for the month of October is less relevant, with the low of the month occurred on the 9ththon the same day as the flash crash.
- Nevertheless, the advance of the low level of the year (0.5506) continues to evolve as the AUD/USD to break out of the April range, with the exchange rate, centre d’ the The month of February high (0.6774) that the Relative Strength Index (RSI), allow pushes into overbought territory.
- Will keep a close eye on the RSI as it holds above 70, the bullish behavior in the AUD/USD may persist for as long as the device is in overbought territory.
- Need a break/close above the Fibonacci overlap around 0.6970 (23.6% expansion) to 0.6980 (23.6% expansion) to open up to the horizon 2020 high (0.7032), with the next area of interest should come in around 0.7090 (78.6% retracement).
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— Written by David Song, Currency Strategist
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