Australian Dollar: USD/AUD (AUD=X) country’s lenders raised their mortgage rates

Australian Dollar: USD/AUD (AUD=X) country’s lenders raised their mortgage rates

Australian Dollar: USD/AUD (AUD=X) country’s lenders raised their mortgage rates

The Australian Dollar slumped Thursday after more of the country’s lenders raised their mortgage rates, potentially scuppering the Reserve Bank of Australia from its own interest rate rise further down the line, leading traders to dump the currency even after a solid set of July trade balance numbers.

Commonwealth Bank of Australia and Australia and New Zealand Banking Group have both raised rates they charge to borrowers, taking them up by around 15 basis points each, following a similar move by Westpac just last week. Rates have risen in both Australia and New Zealand this last month.

“Both the AUD and the NZD fell today. The trigger was news headlines on mortgage rate increases by two major Aussie banks. The AUD has declined to 0.7170, while the NZD trades near 0.6580,” says Philip Brown, a bond market strategist at Commonwealth Bank of Australia.

Mortgage costs are rising because wholesale funding secured on international markets has become more expensive this year, mostly due to Federal Reserve interest rate hikes and President Donald Trump’s tax reforms, which have made borrowing in US Dollars more expensive the world over.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 0.74.

The projected upper bound is: 0.73.

The projected lower bound is: 0.71.

The projected closing price is: 0.72.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 39.9999. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.08. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 87 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -76. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.000 at 0.720. Volume was 100% below average (consolidating) and Bollinger Bands were 7% wider than normal.

Open High Low Close Volume___
0.720 0.720 0.719 0.720 381

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 0.72 0.73 0.76
Volatility: 8 11 10
Volume: 93,333 101,907 96,741

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX AUD= is currently 5.5% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AUD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AUD= and have had this outlook for the last 19 periods.

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