Reserve Bank Of Australia Revises Inflation Forecasts

• 10 Nov 2017

AUD/NZD

This morning, The Reserve Bank of Australia announced changes to inflation forecasts which suggests that they believe it will take a longer period for prices to rise, hence interest rates are likely to stay on hold for some time. Despite the announcement, there were no major moves in the currency as a result. However, the AUD/NZD pair indicates dominance of the Australian dollar in recent trading sessions. After a retracement since mid-October, the AUD appears to be on the verge of a bullish reversal to resume the original uptrend. Price action has hit and bounced back off the 61.8 Fibo level and is now testing the 20-period EMA. RSI also has a sharp upward trajectory.

AUD/CHF

The AUD/CHF pair is challenging a long- term trend-line at around the 0.764 level, which has resulted in a bullish reversal on three previous occasions. Momentum indicators are subdued although slightly bullish. A break of the trend-line coupled with a break of the zero line on MACD would mark a significant bearish move.

AUD/CAD

The AUD/CAD pair has broken the lower Bollinger band and bounced back from the 0.971 price line. A hammer candlestick to start today’s trading session suggests that buyers are active and impacting price action. With volume rising into the move it appears that there may be enough conviction from buyers to push prices higher. RSI has turned more positive after reaching support levels.

AUD/USD

The AUD/USD pair continues to reject the 0.768 price line however, recent price action appears to show that buyers are becoming more active. Yesterday’s and today’s trading session indicate a rise in buying pressure and momentum appears to be turning bullish. RSI continues to climb from the 30 support level. A break of the 0.768 price level is required to signal the uptrend.