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5 Mar 2013
Forex: AUD/USD retreats from highs, around 1.0232
After peaking above 1.0250, the Aussie dollar is now retreating to the 1.0230/35 region, after better-than-expected domestic results plus the RBA decision to remain on hold have boosted the AUD.
Adrian Foster, analyst at Rabobank, expects the central bank to cut rates at least once more during the present year, with the main target being the strong AUD. “But as better signs internationally spread and the domestic economy shows signs of doing better, especially the housing market, the hurdle to a cut becomes higher and the RBA staying on hold becomes more likely”, concludes Foster.
At the moment, the pair is advancing 0.37% at 1.0234 facing the next hurdle at 1.0250 (MA10d) and then 1.0290 (high Feb.28).
On the downside, a break below 1.0166 (Lower Bollinger) would expose 1.0116 (2013 low Mar.4).
Adrian Foster, analyst at Rabobank, expects the central bank to cut rates at least once more during the present year, with the main target being the strong AUD. “But as better signs internationally spread and the domestic economy shows signs of doing better, especially the housing market, the hurdle to a cut becomes higher and the RBA staying on hold becomes more likely”, concludes Foster.
At the moment, the pair is advancing 0.37% at 1.0234 facing the next hurdle at 1.0250 (MA10d) and then 1.0290 (high Feb.28).
On the downside, a break below 1.0166 (Lower Bollinger) would expose 1.0116 (2013 low Mar.4).