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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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
Prices above are subject to our website terms and agreements. Prices are indicative only
