Has Aussie Found a Bottom?

Has Aussie Found a Bottom?

Aussie found a bid in in the wake of the RBA Monetary policy report which was a tad more upbeat about the economy but more importantly stated that the AUD/USD was expected to fall once the Fed begins its tightening cycle. This was in fact an implicit admission that the RBA is done cutting rates for the time being and therefore was viewed positively by the market with AUD inching back towards the 7400 figure.

After relentless selling all summer long, the Aussie appears to have found a modicum of support at the 7250 level and with US data still leaving the September rate hike an open question, the Aussie is likely to hold the lows for now and start a short covering rally towards the 7500 figure.

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