EUR/USD range trades while AUD/USD and AUD/CAD slide post RBA minutes
Outlook on EUR/USD, AUD/USD and AUD/CAD post finely tuned RBA minutes.
EUR/USD range trades below one-month high
EUR/USD continues to range trade in low volatility as investors assess the European and US economies and their central banks’ monetary policies.
Last week the cross rose to $1.097, close to its $1.0973 early-April high. Further up lies the minor psychological $1.10 mark which may be reached once the current sideways trading range has run its course.
Potential slips may find support along the 55-day simple moving average (SMA) at $1.0884.
AUD/USD drops as investors mull over RBA minutes
AUD/USD is seen swiftly coming off last week’s $0.6899 four-month high as the Reserve Bank of Australia’s (RBA) minutes showed that the decision to hike had been finely-balanced, and investors scaled back expectations of another rate increase in July.
The cross is currently trying to find support around its $0.6806 to $0.6793 early- to mid-April highs. If slipped through, the 20 April high at $0.6772 would be eyed.
Resistance at Friday’s $0.6856 low is expected to cap any short-term comeback by the bulls. While no rise above last week’s high at $0.6899 occurs, further downside is likely to be on the cards for the days ahead.
AUD/CAD comes off its two month high following RBA minutes
The AUD/CAD exchange rate, which had been rising from its C$0.8784 seven-month late-May low, seems to have topped out at last Friday’s C$0.9117 two-month high.
Tuesday’s RBA minutes provoked further Australian dollar depreciation with the cross dropping to the 55-day SMA at C$0.8989. This currently offers support.
Below it nonetheless beckons the April trough at C$0.8944. Resistance above Monday’s C$0.9026 low can be spotted along the 200-day SMA at C$0.9046.
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