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Technical & Trade View
AUDUSD
Bias: Bullish Above Bearish below .6650
.6760 Target Achieved, New Pattern Emerging
Technicals
Primary support is .6650
Primary upside objective is .6900
Next pattern confirmation, acceptance above .6775
Failure below .6620 opens a test of .6550
20 Day VWAP bullish , 5 Day VWAP bullish
Today’s New York Cut Option Expiries: N/A
Institutional Insights
According to analysts at Credit Agricole, 'while the Australian economy remains strong, the RBA believes it can be less aggressive than the Fed as Australia is not experiencing a wage-price spiral like the US. A falling Australian-US rate differential along with China’s weak growth will keep the AUD under downward pressure in the coming 3-6M. A soft economic landing locally and globally and recovery in China’s growth improve AUD/USD’s prospects from mid-2023 onward'
JPMorgan retain a bullish stance on the AUD, 'this week in Q&A RBA Deputy Governor Bullock repeatedly stated that while no one should doubt the board’s resolve in dealing with inflation, there are trade- offs regarding the timescale on which this is achieved. This suggests meaningful weight is still being placed on the growth path and on preserving accrued gains in employment. Our AUD long is partly premised on the idea of a more risk friendly growth/inflation mix in Australia. The RBA beginning to prioritise growth certainly favours this in our view'
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!