The Australian Dollar retreats over lower consumer inflation expectations
|AUD/USD struggles to rebound
The Australian dollar retreats over lower consumer inflation expectations. On the daily chart, the price is in a M-shaped consolidation, indicating that the aussie is at a crossroads after it gave back all the gains from the June rally. 0.6500 is the current support as the RSI’s double dip into the oversold area was met with some bargain hunting bids. The buy side will need to clear the support-turned-resistance of 0.6610 to ease the downward pressure. Otherwise, the pair could be vulnerable to a liquidation below 0.6450.
NZD/USD continues lower
The New Zealand dollar softens as inflation expectations show signs of easing. A drift below the daily swing low of 0.6060 has put those who bought along the summer rally on the defensive. The area between June’s low of 0.5990 and the psychological level of 0.6000 is critical in keeping the kiwi afloat for the coming days as its breach could trigger an extended sell-off towards 0.5800. The RSI’s oversold condition has attracted some buying but 0.6130 is the first hurdle to lift before a sustained rebound could materialise.
FTSE 100 bounces back
The FTSE finds support from commodity stocks in the hope of economic stimulus in China. The pullback has met buying interests in the demand zone 7400-7500 from the start of the breakout rally in mid-July, and a close above the first resistance of 7600 prompted short-term sellers to trim their bets, opening the door to a potential recovery. 7660 right below the recent peak could be the bears’ last stronghold and a bullish breakout would provide confirmation. 7540 is the first support as the RSI shows an overbought situation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.