Market participants received an update from the RBA Governor Philip Lowe Tuesday after comments implied Australians should be prepared for more interest rate increases.
Dr Lowe said from the Sydney American Chamber of Commerce event, “So we don’t see a recession on the horizon, but if the last two years have taught us anything, you can’t rule anything out.”
Meanwhile, the Reserve Bank of Australia’s (RBA) June monetary policy meeting’s minutes showed that board members remained committed to doing what is necessary to ensure that inflation in Australia returns to the target over time.
The U.S. was absent in observance of Juneteenth, which was observed on Sunday.
Juneteenth, also called Black Independence Day, Emancipation Day, and Jubilee Day, will be observed for the first time in U.S. history.
Eyes now turn to the speeches from U.S. Federal Reserve chairman Jerome Powell this week.
On Wednesday and Friday, U.S. Fed Powell will need to justify last week’s biggest rate hike since 1994 in front of the Senate Banking Committee.
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, with the ADX indicator holds to a ranging market.
From last Friday’s decent, market bulls are expected to gather from the key support area at US$0.6845-55, which should provide a potential broad base (support).
A clearance of US$0.7015 should ignite renewed momentum to US$0.7100. Reassess from there.