AUDUSD turns negative after hitting earlier today three-month highs at 0.6929; as of writing the pair gives up 0.11% at 0.6895 snapping fourth consecutive trading sessions with gains; The bullish momentum gained traction after the pair pierced above the 100-day moving average getting a boost from the interest rate cut from Fed and the positive news on the US-China trade negotiations. Investors also cheered the positive Brexit deal developments as UK is heading for general election in December. The Chicago Purchasing Managers’ Index came in at 43.2, below forecasts of 48 in October. The US Initial Jobless Claims registered at 218K, beating expectations of 215K for October 25, while the Continuing Jobless Claims came in at 1.69M, topping the forecasts of 1.68M in October 18.
Australia’s growth has been cut for full-year 2019 and next year as the IMF predicts a weak year for the global economy. World Economic Outlook, predicts Australia to grow at 1.7% in 2019, down from a predicted 2.1%.
RBA governor Lowe pointed out that the interest rate cuts are supporting Aussie economy and the housing market and a move to negative interest rates is “extraordinarily unlikely”. RBA has cut interest rates three times since June and has said it may ease even further, venturing deeper into levels where unconventional measures may need to be adopted.
AUDUSD registered today fresh three-month highs bu failed to hold the gains and turned negative below the 0.69 mark. AUDUSD short term outlook has remains bullish now; The rebound from 10-year lows gained traction above the 50 and 100-day moving average.
On the upside, first resistance stands at 0.6929 today’s high and then at 0.6955 the 200-day moving average. A break above might signal a move to the next hurdle at 0.70 the high from July 24th. On the downside, first support for AUDUSD stands at 0.6887 the today’ low and then at 0.6848 the 100-day moving average, while more bids will emerge at 0.6794 the 50-day moving average. A sustained move below will open the way for a visit down to 10-year lows.Download our latest quarterly market outlookfor our longer-term trade ideas.
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