AUD/USD Carves Near-Term Bullish Formation Ahead Of RBA, 3Q GDP

AUD/USD Daily

Chart – Created Using Trading View

• AUD/USD may extend the recent series of higher highs & lows over the next 24-hours of trade as the Reserve Bank of Australia (RBA) is widely expected to keep the official cash rate at the record-low of 1.50% at the last 2016 interest rate decision; it seems as though Governor Philip Lowe & Co. are on course to conclude the easing-cycle ahead of 2017 as the central bank argues inflation is ‘expected to pick up gradually over the forecast period;’ more of the same from the central bank may spark a bullish reaction in the aussie as market participants scale back bets for additional monetary support.
• Nevertheless, Australia’s 3Q Gross Domestic Product (GDP) report is anticipated to highlight a slower expansion, with the growth rate projected to increase an annualized 2.5% following the 3.3% expansion during the three-months through June, and a lackluster print may keep the exchange rate capped especially as the aussie-dollar fails to preserve the upward trend from earlier this year.
• May see another test of the former-support zone around 0.7500 (50% retracement) to 0.7530 (38.2% retracement) as the Relative Strength Index (RSI) continues to come off of oversold territory, with the next topside hurdle coming in around 0.7590 (100% expansion) to 0.7600 (23.6% retracement).

NZD/USD Daily