KEY POINTS OF THE ARTICLE:

• Markets anticipate additional easing measures
• The Aussie (AUD/USD) catches its breath after its multi-week rise
• Perfect neutrality on the euro against the Australian dollar
• Consolidation against the yen after the rise

MARKETS ANTICIPATE FURTHER RELAXATION MEASURES

The return to risk appetite on the equity market has not yet translated into that of currencies. The Australian dollar remains rather in a phase of consolidation against the major currencies

The Reserve Bank of Australia (RBA) left its monetary policy unchanged in October but left open options for further easing measures in its latest statement. The market therefore anticipates a broadening of its accommodative policy, which in the short term caps the rise of the Australian currency despite the weakness of the American dollar. Continued Commodity Rise Could Boost Australian Dollar

THE AUSSIE (AUD/USD) COME BACK AFTER SEVERAL WEEKS RISE
Against the US dollar, the Australian dollar is blocked by a downtrend line and hesitates inside the Ichimoku cloud above the tenkan sen and the kijun sen which meet at the 0.7175 level.

Below this level, prices could go back to 0.7096 previous low or even 0.7025 low of September which allowed a rebound of prices and the laggin span. The trend would turn bearish below.

In case of crossing the resistance, the rise would resume towards 0.7345.

Evolution of the Australian dollar against the US dollar in daily data:

PERFECT NEUTRALITY ON THE EURO AGAINST AUSTRALIAN DOLLAR

Against the euro, the Australian dollar is in the middle of a range that has lasted since early June. There is no sign of the start of a move, traders are selling the high of the range at 1.6600 and buying the low above 1.6100. Perfect neutrality in the middle.

Evolution of the euro against the Australian dollar in daily data:

CONSOLIDATION AGAINST YEN AFTER THE RISE

Against the Yen, the Australian dollar is consolidating horizontally between 74 and 78.45. The rebound in prices was limited to 76.55 at the level of the Ichimoku cloud and prices fell back towards the junction of the tenkan and the kijun in the very short term at 75.75. Below this level is intermediate support at 74.95.

Above 76.55 the rise could resume towards the 3rd quarter high at 78.45

Evolution of the Australian dollar against Japanese yen in daily data: