The AUD/USD Holding Under 0.7200 Ahead of the RBA Minutes
Rowan Crosby • 1 min read
The AUD/USD is relatively unchanged in early Asian trading on the back of a bit of weakness on Friday.
Risk-off was the order of the day on Friday as weak data out of China crushed Wall Street and many of the risk currencies like the Aussie felt the wrath of sellers.
This week the major event for the Aussie is the RBA minutes. One of the biggest issues that we’ve seen out of Australia recently has been the big miss in GDP.
The poor showing has really hurt the AUD/USD and the thinking is now that the RBA is really going to be forced to show their hand, in terms of pushing out their expectations for a rate hike.
With weak growth and being in the midst of a property price correction, there seems little incentive to get rates higher anytime soon. This will likely keep the Aussie under pressure into the holidays.
The AUD/USD is now holding the major level at 0.7200 and there doesn’t look like there is much hope of a quick rebound.
The major risk factor this week in my eyes might be the FOMC. While a rate hike is basically priced in, with a potential dovish outlook for 2019, that might put the USD under a bit of pressure.
Which would see a spike higher in the AUD/USD. But at 0.7200, I think it is a good selling opportunity.