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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​​AUD/USD falls as RBA holds rate steady while USD/JPY and USD/CNH rally​​​

​​Outlook on AUD/USD, USD/JPY and USD/CNH as rates remain unchanged for a third consecutive month in Australia and China's services sector expansion disappoints.

USD Source: Bloomberg

​​​AUD/USD resumes its descent as RBA holds rates steady

​AUD/USD’s bounce off its near ten-month August low at $0.6365 has been lacklustre with it only rising to $0.6522 before swiftly resuming its descent as the Reserve Bank of Australia (RBA) kept rates on hold for a third month in a row at 4.1%.

​The 25 August low at $0.6381 is about to be hit with the August trough at 0.6365 being next in line. If also fallen through, as seems probable, the mid-October high at $0.6348 would be eyed ahead of the November low at $0.6273.

​Minor resistance sits at Friday’s $0.6439 low. While the next higher $0.6522 late August high isn’t overcome, the medium-term downtrend remains intact.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

​​USD/JPY has resumed its advance

​USD/JPY’s consolidation over the past three months, which took it down to its early September low at ¥144.45, has most likely ended with the August high at ¥147.37 about to be hit as the greenback continues to appreciate.

​Now that US market players are expected to re-enter the fray after Monday’s Labor Day holiday, a rise above ¥147.37 would put the psychological ¥150.00 region back on the map.

​Minor support can be spotted between the ¥146.56 mid-August high and the ¥146.40 22 August high. The medium-term uptrend will remain valid as long as last week’s low at ¥144.45 underpins.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

​USD/CNH rallies as optimism around easing measures in China fade

USD/CNH rallies off its two-week August low at ¥7.2392 as activity in China's services sector expands at its weakest pace in eight months.

​The break through the one-month resistance line at ¥7.287 puts the late August high at ¥7.3106 on the cards, a rise above which would open the way for the August peak at ¥7.3497 to be reached.

​Potential slips should find support between Monday’s high and the late August low at ¥7.2789 to ¥7.2678. Technically speaking the cross remains in a medium-term uptrend as long as it stays above its ¥7.2392 recent low.

USD/CNH chart Source: IT-Finance.com
USD/CNH chart Source: IT-Finance.com

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