Australian dollar drops as RBA talks it down

See the latest Australian dollar analysis here:

Macro Afternoon

by Chris Becker

The RBA Governor is trying to jawbone the Australian dollar lower in his testimony to Parliament today, stating the cash rate is likely to be 0.25% for five years or more, giving deposit holders around the country a coronary.

The dollar is moving slightly lower, with the hourly chart showing a break of support at the 71.40 level so we could see a further retracement down to yesterdays low towards the 71 handle:

An interesting pattern is forming on the AUDNZD cross with a successive series of new highs, now above the 1.09 handle (oh what a perfect time to holiday across the ditch – damn you COVID-19!) – but this is a technical bearish wedge with momentum well overextended:

Meanwhile, the PBOC has pushed the fix down only slightly to end the week right on the 6.94 handle, but offshore trading remains slightly above that level but still quite depressed:

Back to precious metals fantasy land, where the misty mountains are still filled with gold bugs as the shiny metal moves past former trailing resistance on the four hourly chart and almost back to the previous breakout point that took it furiously up through the $2000USD per ounce level:

Silver is even more ebullient, poking up through $27USD per ounce this morning:

Stocks are having a quiet session going into the weekend with the ASX200 up 0.25% while Japanese and Chinese stocks are literally treading water:

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Comments

  1. @Chris Becker – It would be great if you could do a post on how to read these charts properly and what tools you use to assess the trades you make.

    • hey, sometimes you eat the bar, and sometimes the bar eats you. dont be all gloaty gloat now. as long as hes winning more than losing its all good. i been buying since 2015. do you really think its going to $150?

  2. happy valleyMEMBER

    “The RBA Governor is trying to jawbone the Australian dollar lower in his testimony to Parliament today, stating the cash rate is likely to be 0.25% for five years or more, giving deposit holders around the country a coronary.”

    The message is they’re dead, buried and cremated compliments of the RBA happy clappies and the private bankster r.pists?