US DOLLAR OUTLOOK: AUD/USD PRICE ACTION MIRED BY RBA DECISION DUEUS Greenback gained floor throughout the board of main foreign m
US DOLLAR OUTLOOK: AUD/USD PRICE ACTION MIRED BY RBA DECISION DUE
- US Greenback gained floor throughout the board of main foreign money pairs throughout Monday commerce
- The DXY Index jumped 0.5% on the session, extending its rebound to eight-week highs
- AUD/USD worth volatility prone to speed up as a consequence of Reserve Financial institution of Australia occasion danger
- Be taught extra concerning the fundamentals of technical evaluation or implied volatility buying and selling methods
The US Greenback superior broadly on Monday as bulls proceed to drive the rebound. US Greenback power was notable throughout EUR/USD and USD/CAD specifically throughout the session. The DXY Index now trades at its highest degree in eight-weeks following the most recent 0.5% achieve. To not point out, the continuing rebound has pushed the broader US Greenback again above its 50-day easy transferring common for the primary time since early November.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (20 OCT 2020 TO 01 FEB 2021)
Chart by @RichDvorakFX created utilizing TradingView
This leaves the DXY Index flirting with technical resistance posed by the 91.10-price degree, which is emphasised by 09 December shut. The higher Bollinger Band additionally appears to be preserving advances comparatively contained, however its increasing width is noteworthy and should facilitate extra upside potential.
Comply with-through larger may see the 100-day easy transferring common come into focus. That stated, the US Greenback may face headwinds stemming from a retracement decrease within the VIX ‘fear-gauge.’ That is seeing {that a} falling VIX Index sometimes corresponds with a mechanical downshift in demand for safe-haven currencies.
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USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
AUD/USD worth motion is anticipated to be essentially the most energetic throughout Tuesday’s buying and selling session. That is judging by AUD/USD in a single day implied volatility of 14.3%, which is the best studying throughout G10-FX. AUD/USD implied volatility is probably going elevated owing to occasion danger on deck surrounding the Reserve Financial institution of Australia.
The February 2021 RBA price choice is due for launch Tuesday, 02 February at 03:30 GMT. AUD/USD may commerce on its entrance foot within the wake of the RBA choice if the central financial institution leaves financial coverage unchanged as extensively anticipated. That is contemplating rate of interest futures merchants have priced in a close to 30% likelihood that the RBA cuts charges heading into the occasion.
Hold Studying – US Greenback Technical Forecast: DXY, EUR/USD, GBP/USD, AUD/USD
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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