AUD/USD: Upside possibility on RBA’s hang – ING

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Analysts at ING see possibility in AUD/USD tilted to the upside for subsequent week and believe it would industry between 0.6850 and zero.7000. Their one-month goal is 0.6750. 

Key Quotes: 

“The Australian buck has staged constant positive aspects this week, making the most of strong possibility urge for food and an encouraging inflation learn, that allayed the lingering doubts on whether or not the RBA will stay charges on hang subsequent week. The marketplace is now pricing in just a 6% likelihood of a reduce subsequent Tuesday, so lots of the response shall be pushed via the Financial institution’s forward-looking language. Our base case is that the RBA will chorus from to any extent further cuts no less than throughout the finish of 2019, so we’d now not be stunned to peer Governor Lowe offering some indications of a extra prolonged pause within the easing cycle. On the other hand, he might neatly err at the aspect of warning and stay the door open for extra cuts, while anticipating trends within the inflation and employment spheres in addition to at the international industry backdrop.”

“We expect {that a} additional stabilisation in possibility sentiment and the potential for a hawkish shift  via the RBA means that the stability is skewed to the upside for AUD/USD within the subsequent week. The 200d MA at 0.6955 will have to, then again, end up to be a moderately forged resistance to AUD rallies for now.”
 

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