Less Dovish RBA Statement Provides Support To the Australian Dollar

• 5 Dec 2017

AUD/USD

After a somewhat more positive statement from the RBA, the Australian dollar has found a new set of buyers. As such, the AUD/USD pair has broken the 20-period EMA and an upward trajectory on RSI confirms the bullish momentum. MACD also appears to be turning less positive and a break of the zero line will provide weight to the uptrend.

EUR/AUD

The EUR/AUD pair is testing the 20-period EMA with a marked downward trajectory on RSI confirms the bearish sentiment. However, MACD although less so, remains in strongly positive territory. Volume has been declining into the move so it appears that the bearish sentiment may be short-lived.

Impact event: Trade Balance data for Canada will be released at 15:30 GMT+2 and will impact all CAD pairs.

AUD/JPY

The AUD/JPY pair has also broken the 20-period EMA to the upside with a sharp upward move on RSI to break the 50 support level. MACD is also turning sharply positive and beginning to approach the zero line, perhaps indicating a trend change for the pair.

AUD/CHF

The AUD/CHF pair follows the same pattern as the AUD/JPY pair although, the pair is also approaching a mild resistance area at the 0.753 price line, where prices have been rejected when a bullish candle reached this level. If the pair can break through this area, the uptrend will likely continue. MACD has turned less negative which could signal a change in sentiment and hence, a change in trend.