{"id":54624,"date":"2014-07-22T06:51:09","date_gmt":"2014-07-22T10:51:09","guid":{"rendered":"http:\/\/countingpips.com\/?p=54624"},"modified":"2014-07-22T07:02:14","modified_gmt":"2014-07-22T11:02:14","slug":"the-aussie-governor-stevens-surprises","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/07\/the-aussie-governor-stevens-surprises\/","title":{"rendered":"The Aussie: Governor Stevens Surprises"},"content":{"rendered":"
July 22, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

Reserve Bank of Australia (RBA) Governor Stevens surprised last night.<\/p>\n

During a public speaking event in support of the Anika Foundation, the RBA Governor refrained from offering a dovish outlook when quizzed about the Australian economy. This was quite the contrary to Steven\u2019s approach to a previous public speaking event on the 2nd<\/sup> July, when the RBA Governor explicitly stated that investors were underestimating the risk of a significant fall in the Australian currency. As a result of those comments, the Aussie declined by over 160 pips in just under 48 hours. This represented the largest AUDUSD decline since January.<\/p>\n

Stevens refraining from using dovish statements last night has left me wondering whether the Aussie could be at risk to their CPI (Inflation) release this evening.<\/p>\n

Back in around April time, it could be suggested that the RBA first transitioned towards displaying a more dovish stance on the Australian economy. The Central Bank announced during an RBA Minutes release that the Australian economy was set to enter a period of weaker economic growth, alongside lower inflation levels.<\/p>\n

Since then, the RBA have on various occasions tried to entice investors into selling their currency by using a variety of dovish statements. This has included reiterating that the Australian economy is set to enter a period of weaker economic growth and the current Aussie valuation being historically high.<\/p>

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Tonight is the first Australian CPI release since the RBA began using a dovish tone, when speaking about their economy.<\/p>\n

If tonight\u2019s Australian CPI release misses expectations, then not only could this be viewed as a reason why Governor Stevens refrained from talking down the Aussie last night, but it would also provide validity to the RBA\u2019s prior warnings and question the Australian economic growth prospects. Furthermore, the AUDUSD would likely become under pressure.<\/p>\n

Current AUDUSD support levels are located at 0.9359, 0.9345 and 0.9329. A potential break below the downside of the latter support level would represent the lowest AUDUSD valuation in six weeks.<\/p>\n

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Written by Jameel Ahmad, Chief Market Analyst at FXTM.<\/strong><\/p>\n

For more information please visit: Forex<\/a> Time<\/a><\/p>\n

Disclaimer:<\/b> The content in this article comprises personal opinions and ideas and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/p>\n

Risk Warning:<\/b> There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice<\/p>\n

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ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

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Article by ForexTime Reserve Bank of Australia (RBA) Governor Stevens surprised last night. During a public speaking event in support of the Anika Foundation, the RBA Governor refrained from offering a dovish outlook when quizzed about the Australian economy. This was quite the contrary to Steven\u2019s approach to a previous public speaking event on the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-54624","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/54624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=54624"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/54624\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=54624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=54624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=54624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}