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.
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.
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/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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
