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Aug 09 - 03:55 PM

AUD/USD - Warnings Flash For Longs After 12-Session High Struck

By Christopher Romano  —  Aug 09 - 01:40 PM
  • NY opened near 0.6575 after pair hit a 12-session high of 0.6605 overnight

  • Pair held a tight range, traded within 0.6567-0.6587 during NY's session

  • AUD/USD traded down -0.21% in NY's afternoon & daily techs warned longs

  • Equity ESv1, gold XAU= gains likely helped limit the downside

  • US yield US2YT=RR, USD/CNH lift off low may have helped limit the upside

  • RSI diverged on the 12-session high, daily inverted hammer formed

  • Signals emerged after AUD/USD rally above then fell below 21- & 200-DMAs

  • Daily tech suggests AUD/USD may need to correct some of this week's rally

  • Monthly bull hammer and rising monthly RSI gives longs some comfort

  • Investors to focus on US July CPI, PPI & retail sales reports next week

  • Downbeat results may send yields lower & bring on carry trade unwinds

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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