Fragile Aussie reacts to RBA governor easing indication

  

Last night (European time) the Aussie dollar eventually broke through the support level we recognised last Friday (http://omicronforex.blogspot.ie/2013/07/what-was-aussie-minor-support-just-got.html). The catalyst was a speech by the governor of the Reserve Bank of Australia, Glenn Stevens, who said that inflation projections in Australia may leave room for further easing, which means a further reduction in the Australian dollar official interest rate, or the cash rate. This was predicted by Omicron Forex last Friday.

A rate cut is now expected next week.

Now all that remains is the support level that has formed on the daily chart, here:

While at the same time, as mentioned yesterday, all eyes will be on the ADP payrolls report in the USA tomorrow (Wednesday). A strong figure here will be seen to presage a good official figure from the U.S. Statistics Bureau in the Non-Farm payrolls report on Friday. This will tend to strengthen the U.S. dollar, putting further pressure to the downside on the AUDUSD pair.

We intend to initiate the Omicron Forex Silver Trigger algorithmic routine for a possible entry on the short side in this pair, should the Silver Trigger momentum trigger see fit to do so. This would be of particular value from the point of view of getting probability on our side, as we always attempt to do, if there is a retrace later in the global day today.

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