AUD/USD Continues Winning Streak After Less Dovish RBA Comments

FXOpen

The AUD/USD pair trades at its highest in 2 weeks, boosted by a less than expected dovish RBA statement yesterday, and a continued recovery in commodity prices. The near term technical bias remains bullish because of a Higher High and Higher Low in the recent wave on a four-timeframe.

Technical Analysis

The pair holds near its highs early Asia and the 1-hour chart shows that the Momentum indicator has resumed its advance well above its 100 level after correcting overbought readings, whilst the RSI indicator holds around 70, and the 20 SMA heads sharply higher around 0.7120.

AUD/USD Continues Winning Streak After Less Dovish RBA Comments

In the 4 hours chart, the technical indicators have lost upward their strength near overbought levels, but the price has broken above its 200 EMA for the first time since mid-September, supporting additional gains in the mid-term, as long as the level holds.

Meanwhile, the Central Bank Governor, Glenn Stevens, showed little concern over the economic slowdown in the region, and even cited improvement in the labor market after leaving rates unchanged at 2.0%.

Australia Average Weekly Wages

Wages In Manufacturing in Australia decreased to 1259 AUD/Week in the second quarter of 2015 from 1268.50 AUD/Week in the fourth quarter of 2014, a government report said. Wages In Manufacturing in Australia averaged 732.20 AUD/Week from 1983 until 2015, reaching an all-time high of 1268.50 AUD/Week in the fourth quarter of 2014 and a record low of 333 AUD/Week in the fourth quarter of 1983.

Trade Idea

Considering the overall technical and fundamental outlook, waiting for a bearish reversal candle at this stage could be a good strategy in the short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: Dollar Falls from 10-month High Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: Inflation, EUR/USD, S&P 500, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Inflation Still Dogs the

Forex Analysis

Market Analysis: Dollar Falls from 10-month High

EUR/USDThe euro rose on Thursday as the dollar retreated since investors remained cautious ahead of key inflation figures due on Friday. Data on Thursday showed the US economy maintained fairly strong growth in Q2, with an unrevised annual rate

Indices

US 30 Analysis: Dow Jones Finds Support

September is likely to be the second month in a row that the Dow Jones (US 30) stock market index declined. The last time this happened was... also in September, a year ago. Important economic data was published yesterday: → According

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.