AUD/USD Extends Bearish Series Following RBA; Downside in Focus

Talking Points:

USD/JPY Eyes Channel Support, 2017 Low (110.11) as Risk Sentiment Abates Ahead of NFP.

AUD/USD Extends Bearish Series Following RBA; Downside Targets in Focus.

DailyFX Table

USD/JPY Daily

USD/JPY Daily Chart

Chart – Created Using Trading View

  • The Japanese Yen outperforms a vital counterparts, with USD/JPY eyeing a 2017-low (110.11) as it appears to be pulling behind towards channel support; a new strength in a Yen has been accompanied by a decrease in tellurian benchmark equity indices, with a Nikkei (JPN225) trade nearby a Jan low (18638).
  • Broader opinion stays slanted to a downside as a sell rate and a Relative Strength Index (RSI) safety a bearish arrangement from progressing this year, yet a movement indicator appears to be disconnecting with cost following a unsuccessful try to pull subsequent 30; a oscillator might foreshadow a incomparable liberation in USD/JPY as it continues to pierce divided from oversold territory.
  • In light of a limited marketplace greeting to a U.S. information prints from progressing this morning, a ISM Non-Manufacturing consult runs a risk of pity a identical predestine amid expectations for a tiny downtick in business sentiment, yet uninformed comments from Fed Governor Daniel Tarullo might lean a near-term opinion for USD/JPY as a flourishing array of executive bank officials uncover a incomparable eagerness to tell a quantitative easing (QE) module over a entrance months; will also demeanour for cues in a Federal Open Market Committee (FOMC) Minutes as a executive bank appears to be on march to exercise 3 to 4 rate-hikes in 2017.
  • Will keep a tighten eye on a monthly opening range, yet another unsuccessful try to break/close subsequent a Fibonacci overlie around 109.40 (50% retracement) to 109.90 (78.6% expansion) might encourage a incomparable miscarry in USD/JPY generally as a RSI binds above oversold territory; initial topside jump comes in around 111.10 (61.8% expansion) to 111.60 (38.2% retracement) followed by 112.40 (61.8% retracement) to 112.80 (38.2% expansion).

AUD/USD Daily

AUD/USD Daily Chart

Chart – Created Using Trading View

  • AUD/USD struggles to reason a belligerent following a Reserve Bank of Australia’s (RBA) Apr meeting, and a span might continue to lane a extended operation carried over from 2016 as it stays mostly capped by a Fibonacci overlie around 0.7730 (61.8% retracement) to 0.7770 (61.8% expansion); a bearish arrangement in a RSI keeps a near-term disposition slanted to a downside, with a aussie-dollar during risk for serve waste as it extends a array of reduce highs lows carried over from a prior week.
  • It seems as yet a RBA is in no rush to lift a executive money rate off of a record-low as ‘the arise in underlying acceleration is approaching to be a bit some-more light with enlargement in work costs remaining subdued,’ and a executive bank might continue to validate a wait-and-see proceed for a foreseeable destiny as a executive bank highlights ‘lenders have recently announced increases in debt rates, quite those paid by investors.’
  • Even yet a RBA anticipates title acceleration to collect adult over a entrance months, a executive bank appears to be adopting a some-more discreet tinge as officials advise ‘growth in domicile borrowing, mostly to squeeze housing, continues to outpace enlargement in domicile income;’ in turn, Governor Philip Lowe and Co. might continue to tame seductiveness rate expectations and uncover a incomparable eagerness to keep a stream process via 2017 as commercial banks in Australia boost lending costs.
  • Moreover, with a RBA now warning ‘some indicators of conditions in a work marketplace have malleable recently,’ Australia’s Employment news due out on Apr 13 might impact a financial process opinion following a astonishing 6.4K decrease in March.
  • A tighten subsequent 0.7590 (100% expansion) to 0.7600 (23.6% retracement) might coax a pierce behind towards a March-low (0.7491), that lines adult with a Fibonacci overlie around to 0.7500 (50% retracement 0.7530 (38.2% expansion), with a subsequent downside area of seductiveness entrance in around 0.7450 (38.2% retracement).

For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!

Click HERE for a Entire DailyFX Webinar schedule.

DailyFX Table

Click Here for a DailyFX Calendar

If you’re looking for trade ideas, check out a Trading Guides.

Read More:

April Forex Seasonality Sees USD Weakness contra AUD, GBP, and EUR

Technical Weekly: GBP/USD – Setting a Table for Cable

DailyFX Roundtable: Post Brexit Trade Setups and Themes

Silver Price Makes It Nine in a Row, Turning Lower off Jul Trend-line

Crude Oil Price Forecast: Oil To 200DMA On Libya’s Force Majure Claim

— Written by David Song, Currency Analyst

To hit David, e-mail dsong@dailyfx.com. Follow me on Twitter during @DavidJSong.

To be combined to David’s e-mail placement list, greatfully follow this link.

About author