Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
AUD/USD Breaking Bad
00:00, 21 May 2015
By Michael McCarthy, Chief Market Strategist, CMC Markets Australia After a period of strength, AUD/USD may be breaking bad again. RBA Deputy Governor Lowe commented last week that the RBA may still lower rates if it deems fit, and overnight the FOMC moved back the US tightening timetable, but clarified it was looking through the weaker first quarter data. In other words AUD rates may go done, and US rates are going up. No wonder AUD/USD fell away from recent highs: Source: CMC Markets Over 2015 the 0.7885 level has been pivotal – and here we are again. Five straight days of falls have paused at this inflection point. If AUD/USD is resuming its long term downtrend, the potential downside looks significant: Source: CMC Markets Over 2015 the 0.7885 level has been pivotal – and here we are again. Five straight days of falls have paused at this inflection point. If AUD/USD is resuming its long term downtrend, the potential downside looks significant: