AUD/USD Stages Larger Rebound While Retail Shorts Jump 32%

Australian Dollar Talking Points

AUD/USD triggers a uninformed array of aloft highs lows as it breaks out of a slight range, and a span appears to on a fork of a incomparable liberation as marketplace view improves.

Image of daily change for vital currencies

AUD/USD Stages Larger Rebound While Retail Shorts Jump 38%

Image of daily change for AUDUSD

The new allege in global benchmark equity indices instills a constructive opinion for AUD/USD as it points to a pickup in risk-taking behavior, and a change in marketplace view might change a sell rate over a entrance days as a mercantile calendar stays sincerely light until a Reserve Bank of Australia (RBA) releases a financial process assembly mins on Jul 17.

Keep in mind, new comments from a RBA advise a executive bank is in no rush to exercise aloft borrowing-costs as ‘the low turn of seductiveness rates is stability to support a Australian economy,’ and some-more of a same from Governor Philip Lowe Co. might furnish headwinds for a Australian dollar as officials tame expectations for an approaching rate-hike.

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At a same time, a IG Client Sentiment Report highlights an engaging energetic as the array of traders net-long AUD/USD is 5.9% reduce than yesterday and 20.5% reduce from final week, while a array of traders net-short is 6.8% aloft than yesterday and 38.3% aloft from final week. The pointy pitch in sell positioning suggests a throng was attempting to trade a new operation in AUD/USD, with a mangle of a monthly opening operation lifting a risk for a incomparable miscarry in a sell rate as it carves a uninformed array of aloft highs lows.

AUD/USD Daily Chart

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  • Broader opinion for AUD/USD stays slanted to a downside as a span continues to lane a downward trend from progressing this year, with a Relative Strength Index (RSI) highlighting a identical dynamic.
  • However, new developments advise of a incomparable miscarry as aussie-dollar breaks out of a short-term operation following a unsuccessful attempts to tighten next a 0.7320 (50% expansion) to 0.7340 (61.8% retracement) region, with a span during risk of fluctuating a miscarry from a month-low (0.7311) as a bullish method unfolds.
  • Next area of seductiveness comes in around 0.7500 (50% retracement) to 0.7530 (38.2% expansion) followed by a 0.7590 (100% expansion) hurdle, that mostly lines adult with trendline resistance.

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— Written by David Song, Currency Analyst

Follow me on Twitter during @DavidJSong.

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