The AUD/USD retracement could be over and the pair is having another bullish momentum towards upper targets.
As the G20 meetings came to a conclusion, we saw OPEC extend their output caps for a further 9 months which has stabilised the Oil prices. Bond yields in the USA suggest a rate cut, or potentially 2 rate cuts in the next year or so, this has all led to a flight of money into risky assets again. The RBA in Australia today cut their central bank rates further by another 25bps which only adds to further flight to stock markets. Despite this, US Equities are a fraction below all time high’s, so we could see profit taking in Equities, so beware of sudden risk-off. However, the AUD/USD is in a strong uptrend and the POC zone 0.6970-80 could make the price bounce. Targets are 0.7002 and 0.7040. As long as 0.6960 stays strong, the AUD/USD bulls have nothing to worry about.
The analysis has been done with the CAMMACD.MTF template.
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Many green pips,
Nenad Kerkez aka Tarantula FX