AUDUSD: Bears Remain In Control Ahead of RBA Governor’s Speech
The Australian dollar enjoyed some demand against its American rival earlier yesterday, setting a daily high of 0.7249 before erasing most of its intraday gains, ending the day a few pips above its daily opening, on renewed dollar’s demand.
During the upcoming Asian session, RBA’s Governor Glenn Stevens is scheduled to speak at the National Reform Summit, in Sydney. He is not particularly expected to talk about the ongoing economic policy of the country, but his remarks will be closely followed by investors.
Technically, the pair presents a bearish potential in the short term, as in the 1 hour chart the price is extending below its 20 SMA, whilst the RSI indicator heads lower around 39 and the Momentum indicator holds flat below its 100 level.
In the 4 hours chart, the 20 SMA maintains a sharp bearish tone, currently around 0.7240, whilst the technical indicators lack directional strength near oversold levels, maintaining the risk towards the downside, and favoring additional declines on a break below 0.7125 the immediate support.
Meanwhile dollar’s demand weighed heavily on gold prices, as the commodity gave back most of its latest gains. Spot gold added another $12 to its latest decline, ending the day around $1,138.80 a troy ounce, as risk aversion sentiment eased across most of the financial markets, while the dollar recovered some of its shine.
The metal managed to hold above $1,110, a critical level that has become a line in the sand for this recent recovery, as renewed selling interest below it should signal a retest of July low around $1,071.
Technically, the daily chart shows that the 20 SMA maintains a bullish slope well below the current level, but that the technical indicators continue to head lower, coming from overbought levels, and still above their mid-lines.
In shorter term, the 4 hours chart presents a firmer negative bias, with the 20 SMA gaining bearish potential well above the current level and the technical indicators heading sharply lower below their mid-lines.