AUD/USD outlook, Wednesday August 7th
The AUD looks reasonably stable this morning after yesterday’s 25bps rate cut. Today’s economic calendar has Kiwi unemployment, Australian housing data, and a speech from the RBA assistant Governor; none of these should have a major impact on the AUD.
- AUD/USD is stalling ahead of technical resistance near .9000 (see chart) and there are further levels near .9030. Bears still in control but keep trailing stops above .9050 as a break above there could infer that a bottoming formation is evolving.
- AUD/JPY looks technically interesting, with a possible double-bottom at 87.20 and very strong resistance at 89.00/50. I’d play the edges of this range for now.
- AUD/NZD should remain similarly range-bound between 1.12/1.15 and selling any big rallies still looks like the obvious play.
Intraday on AUD/USD; should be toppy near .9000/30 especially if AUD/JPY starts to break lower. Beware if .9050 breaks topside as I think that might set off some heavy short-covering.