AUD Bearish factors: 

  • Trade concerns between US and China to weight on the AUD in the near-term
  • The Key event in the Financial markets will be the Fed monetary policy announcement
  • We expect the FOMC to raise the federal funds rate to 1.50-1.75% (target range by 25bps)
  • We also expect the RBA is on hold into 2019

TECHNICAL OVERVIEW

AUDJPY: Skewed to the downside

The cross posted a classic head and shoulder pattern (H&S) at higher time frames. Weekly support will be available at 80.40 and 79.40 levels. Noting that the 61.8% fib reaction (73.33-90.30 rally) finds at 79.80. The cross will continue to pose downside risk and scope to retrace further to 73.00 levels in the long term.

AUDUSD: The cross has broken below the parallel support 0.7712 and tested the 0.7700 level in the Asian session. The daily and weekly studies RSI and oscillator are remaining bearish. After breaking the parallel support, we forecast two targets pointing to 0.7650 and 0.7620 its 100MA (weekly).

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