Bearish momentum on daily chart shows signs of fading – OCBC

The Australian Dollar (AUD) was a touch firmer this morning amid supported risk sentiments and on comments from RBA’s Hauser. AUD was last at 0.6689, OCBC’s FX analyst Frances Cheung and Christopher Wong note.

Risks skewed to the upside

“Some of the highlights of his recent fireside chat include: inflation is still ‘too high’; was surprised by overall employment growth; labour market outcome in good news story; firms finding it hard to fill vacancies.”

“He also said that RBA is not certain on level of neutral rate but most RBA models should between 3% and 4% neutral rate. He repeated again that RBA rate won’t fall as much or as early as other bans. Remarks were somewhat hawkish and reinforces RBA’s case for standing pat on policy rate for now.”

“Bearish momentum on daily chart shows signs of fading while RSI rose from overbought conditions. Risks skewed to the upside. Next resistance at 0.6780/90 levels (21 DMA), 0.6820 levels. Support at 0.6660.”