Forex Daily Recap – AUD/USD Remained Range-Bound Despite RBA Minutes

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Published: Aug 20, 2019, 19:12 UTC

The upward-facing USD/CHF pair was aiming to breach above the overhead red Ichimoku Clouds. After displaying three consecutive positive sessions in a row, the Japanese Yen pair was attempting to breach above the 106.742 resistance.

AUD/USD

The Aussie pair continued to stay within 0.6737/0.6822 range level even today. Earlier the day, Reserve Bank of Australia (RBA) had come up with some unconventional monetary policies that included negative interest rates. Notably, the policymakers had already slashed rates twice this year, keeping the door for further stimulus. Meantime, the market awaits for a 0.75% rate by year-end, followed by a 0.5% rate in February. The minutes showed, “it was reasonable to expect that an extended period of low interest rates would be required in Australia.”

AUDUSD 1 Day 20 August 2019

On the technical chart, the AUD/USD pair was trading well below the overhead Ichimoku Clouds, strengthening the bears. However, the MACD technical indicator had just made a bullish crossover, staying below the zero line, signaling trend reversals.

USD/CHF

After taking a bounce off the 0.9694 support handle on August 14, the USD/CHF pair was heading to the north. The upward-facing pair was aiming to breach above the overhead red Ichimoku Clouds. Anyhow, the Swiss Franc pair bulls seemed to slow down today amid Switzerland July Trade data.

USDCHF 1 Day 20 August 2019

The July MoM Exports rose 6.87% above the previous 20,543 million. Also, the July MoM Imports grew 10.83%, reporting 18,227 million over prior 16,446 million. Following such mixed Trade data releases, the pair was already 0.21% down in the North American session. In the meanwhile, an upward move above the 0.9820 level would have activated significant resistances stalled near 0.9947, 1.0013, and 1.0098 levels.

EUR/USD

After five negative trading sessions in a row, the Fiber was heading up today, showing slight recovery signs. Anyhow, the pair continued to stay intact within a two-month-old downtrend channel on Tuesday. Interim, the Relative Strength Index (RSI) was indicating 39.27 level, showing oversold conditions. At around 06:00 GMT, the July German MoM Producer Price Index reported 0.1%, in-line with the consensus estimates of around 0.1%. Also, the June MoM Eurozone Construction Output came out 0.00%, higher than the last recorded -0.46%.

EURUSD 1 Day 20 August 2019Later the day, Italian bond yields slipped following Prime Minister Giuseppe Conte’s speech. PM Conte proclaimed his resignation, blaming Matteo Salvini for the political turmoil in the nation. Italy’s 10-year bond yield tumbled 11 bps to 1.32%.

USD/MXN

Today, the overbought RSI was playing its role in dragging down the pair after testing the 19.8794 resistance handle. Anyhow, the USD/MXN pair was hovering well above the red Ichimoku Clouds, sustaining positive price actions.

USDMXN 1 Day 20 August 2019

Also, the base line and the conversion line stood below the trading pair, providing additional strength to the bullish side. Nevertheless, a 20-day old slanting ascending support line remained stalled on the downside, preventing daily losses.

USD/JPY

After displaying three consecutive positive sessions in a row, the Japanese Yen pair was attempting to breach above the 106.742 resistance. The pair had tested this aforementioned sturdy resistance multiple times since August 5.

USDJPY 1 Day 20 August 2019

Anyhow, the efforts had gone in vain each time. Even today, the pair appeared to retreat from this resistance benchmark and lowered, reaching 106.307 level. Despite that, the Parabolic SAR seemed to move below the USD/JPY pair, providing hopes for an immediate upward drift. Meantime, strong resistance conflux consisting of significant SMAs and 109.048 resistance was preventing the positive moves.

About the Author

Nikhil Khandelwalauthor

Nik has extensive experience as an Analyst, Trader and Financial Consultant for Global Capital Markets. His vision is to generate Highest, Consistent and Sustained Risk-Adjusted Returns for clients over long term basis and providing them world-class investment advisory services.