AUDUSD Outlook – FXWW Chatroom

AUD/USD – Choppy. Dollar slump overnight lifted the pair 30 pips higher 
and was last seen around 0.7360. The daily MACD continues to show 
some deceleration in the bullish momentum but the clearance of the 
0.7328-support is still required for further downside towards 0.7216. 
Directional bias is unclear at this point but choppy action is certain. 
Next support is seen around 0.7325 ahead of the next at 0.7260 while 
topsides are capped at 0.7440. We reiterate that the AUD outlook 
remains challenging on multiple fronts. Weak investments in mining and August 20, 2015 3 
GM Daily 
resource sectors as well as the lack of traction in non-mining business 
investments are expected to weigh on growth. Falling commodity prices 
(iron ore, copper) as Chinese demand slows could weigh on Aussie terms 
of trade. Taken together, there is little to be positive in the AUD 
especially against an environment of monetary policy divergence 
(whereby Fed is likely to tighten in coming months while RBA remains on 
neutral to mild easing bias). Medium-term down-trend remains intact, 
with next big support around 0.72 levels (trend-line support from the 
low in 2001 and 2008). Monthly momentum remains bearish bias. We 
caution that a break below this long-term support could expose AUD to 
further downside beyond 0.70

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