All eyes will be on RBA meeting Tuesday
Monday 1st of May
The Australian dollar edged marginally lower through trade on Friday testing key supports and touching intraday lows at 0.7459. With little domestic data on hand to drive direction, the AUD bounced off lows as investors issued a temporary defence on moves at or about the current 100 day moving average and 0.7460/70. The Aussie has been entrenched in a downward spiral over the last 5 – 6 weeks and while the speed of the downturn seems to have abated somewhat the commodity driven unit is still vulnerable to further downside risks. Attentions this week turn to key central bank announcements with the RBA meeting Tuesday and the FOMC sitting Wednesday important markers for short-medium term direction. While both central banks are expected to maintain their current monetary policy platforms there is scope that a hawkish Fed may underpin further Greenback gains and force the AUD lower.