AUD: Does The History Repeat?
Helen Rush | Nov 22, 2017 09:33AM ET
A significant part of the traders has gone to celebrate Thanksgiving Day. Yesterday AUD/USD managed to bounce while the markets were sleeping. The Aussie tried to grow on the RBA’s Governor Lowe comments. It goes almost without saying that the next central bank’s step will be a rate hike. It was really helpful for the currency. Well, it was quite obvious, too. But the question is when the regulator meets its targets. Considering the RBA’s position reflected in the Minutes and comments made by some of the policymakers, it does not happen near term, and probably in this life.
Anyways, the hawkish comments are always AUD-positive, and the pair may continue its recovery after a long fall. At least, it corresponds to its regular cycle: 3 or 4 months of the fall are followed by 2 months of growth. What may put a crimp in the scheme is the strong US data.
AUD/USD tested the intraday maximum at 0.7595. Yesterday it could bounce from the dangerous support level at 0.7500. The bears need a good reason to make their dreams come true here.
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