Aussie Jumps as RBA Chief Says Currency Not Overvalued
Ming Lam June 22, 2020 12:54 PM
On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6805...
Reserve Bank of Australia Governor Philip Lowe stated in a conference: "I think it is likely that we are going to see interest rates at their current level for years."
Regarding the Australian dollar, Lowe said: "I would like a lower currency at some point (...) but at the moment, I think it is really hard to argue the Australian dollar is overvalued."
He cited relatively better health and economic outcomes from the coronavirus impact, and strong commodity prices.
Meanwhile, investors are concerned about a second-wave of the coronavirus pandemic. In Victoria, Australia's second-most populous state, another 19 cases were confirmed Sunday, taking the number of new cases in the state to 160 over the past week. Authorities have extended a state of emergency by four weeks to July 20
On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6810.
Source: GAIN Capital, TradingView
It is currently striking against the Upper Bollinger Band calling for acceleration to the upside.
And strong upward momentum is evidenced by the relative strength index, which is well directed above 50.
Riding on a continued rebound, the pair is expected to encounter Upside Resistance at 0.6875 and 0.6910 (around the high of last Friday).
Alternatively, a return to the Key Support at 0.6810 would open a path toward 0.6775 on the downside.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.