Back
6 Mar 2014
RBA Stevens next: Impact on AUD/USD
FXStreet (Bali) - RBA's Stevens is due to speak at the House of Representatives Standing Committee on Economics at 22.30 GMT. Traders should be prepared for risk headlines moving the Australian Dollar.
What to expect?
Stevens will be questioned on several topics, including the economy, outlook for growth, the value of the Australian Dollar, and the current RBA’s monetary policy, so plenty of headlines to chew on for AUD traders.
On one hand, there is the argument that favour a more hawkish tone on recent improved economic indicators, with the latest examples being Thursday's retail and trade data.
On the other hand, Stevens may express concern about the level of the AUD, which would certainly cause some hesitation for a market positioned long short term - some profit taking noticed ahead of the possible jawboning by Stevens -, especially after a seller's strong-hold at 0.9080 gave up during the last US session, taking the AUD/USD to a fresh 3-month high and breaking the daily cloud in the process.
Even if we see a dip in the AUD/USD, expect plenty of buying interest starting at 0.9050/55 ahead of 0.90. On the upside, should Stevens strike a more hawkish tone, 0.9150 becomes the next target for buyers.
What to expect?
Stevens will be questioned on several topics, including the economy, outlook for growth, the value of the Australian Dollar, and the current RBA’s monetary policy, so plenty of headlines to chew on for AUD traders.
On one hand, there is the argument that favour a more hawkish tone on recent improved economic indicators, with the latest examples being Thursday's retail and trade data.
On the other hand, Stevens may express concern about the level of the AUD, which would certainly cause some hesitation for a market positioned long short term - some profit taking noticed ahead of the possible jawboning by Stevens -, especially after a seller's strong-hold at 0.9080 gave up during the last US session, taking the AUD/USD to a fresh 3-month high and breaking the daily cloud in the process.
Even if we see a dip in the AUD/USD, expect plenty of buying interest starting at 0.9050/55 ahead of 0.90. On the upside, should Stevens strike a more hawkish tone, 0.9150 becomes the next target for buyers.