RBA Vs SNB
The Australian Dollar is catching a strong bid today on the back of the RBA meeting overnight which saw the bank citing a strong economic outlook and announcing tapering of QE due to start in September. While the RBA is sticking to its view that rates will remain on hold until 2024, it is now saying that any move will be data dependant, meaning there is room for an earlier move if the recovery continues to gather pace.
Meanwhile, the SNB has reaffirmed its commitment to keeping rates on hold and has shown no signal that it is near ready to scale out of its easing program. The SNB is committed to preventing excessive strengthening of CHF via it easing and so, for now, the divergence between the RBA and SNB favours further upside in AUDCHF.
Technical Views
AUDCHF
Following a month of basing action around the .6913 level, AUDCHF has now broken higher with price trading above the bearish trend line from YTD highs and above the .6984 level highs. With both MACD and RSI bullish here, on a daily close above the .6984 level, bulls can stay long through to .7083 as the initial target.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.