This is my opinion according to fundamental point of view based on recent news
Thursday, July 18, 2013
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1. China GDP increased to 7.5%. It is already expected for a slow down in China. So, getting more than 7% is already an 'acceptable' number. Anything below 7% would have pushed this pair south aggressively.
2. US reiterates that QE will continue for quite sometimes + near zero interest rate will stay much longer (market expect for tapering as soon as September). So, this give a bit of relief but market are still cautious.
3. Market expect for another rate cut coming this August based on the dovish statement in May and June. But RBA announced in the recent policy statement that another rate cut 'may' only happen at the end of the year.
Therefore, I believe that the EURUSD & AUDUSD may be in ranging mode " 1.29 - 1.3360 " & " 0.89 - 0.94 " (some profit taking from long may cause the pairs to go down) while waiting for any signal from Mr Bernanke testify for the 2nd day. It is possible that pairs may continue to push north if there is nothing new in his speech for at least a week until more economic data released .
Ayman Khlifat on Twitter
Follow @aymankkhlifat
1. China GDP increased to 7.5%. It is already expected for a slow down in China. So, getting more than 7% is already an 'acceptable' number. Anything below 7% would have pushed this pair south aggressively.
2. US reiterates that QE will continue for quite sometimes + near zero interest rate will stay much longer (market expect for tapering as soon as September). So, this give a bit of relief but market are still cautious.
3. Market expect for another rate cut coming this August based on the dovish statement in May and June. But RBA announced in the recent policy statement that another rate cut 'may' only happen at the end of the year.
Therefore, I believe that the EURUSD & AUDUSD may be in ranging mode " 1.29 - 1.3360 " & " 0.89 - 0.94 " (some profit taking from long may cause the pairs to go down) while waiting for any signal from Mr Bernanke testify for the 2nd day. It is possible that pairs may continue to push north if there is nothing new in his speech for at least a week until more economic data released .
Ayman Khlifat on Twitter
Follow @aymankkhlifat
