Global macro overview for 16/05/2017:

The Reserve Bank of Australia Meeting Minutes did not trigger any dramatic turnaround in the AUD market. The general RBA’s point of view is still dovish and positive, but the risks around rapid house price growth remains a principal concern. It was clearly expressed in this passage: “Growth in housing credit had continued to outpace growth in household incomes, which suggested that the risks associated with household balance sheets had been rising”. To prevent the risks of spreading across other assets, the Australian government has reinforced prudent lending standards and ensured that loan serviceability was appropriate under the current financial backdrop. If, however, the situation gets worse, then policymakers suggest that the Council of Financial Regulators could take further measures to cool the sector’s growth. In conclusion, there is no need to panic yet even if the Australian house market is slightly overheated.

Let’s now take a look at the AUD/USD technical picture on the H4 timeframe. The market keeps trading inside of the golden channel, currently in the middle of it. The bias remains bearish as the market conditions look overbought and the price is struggling to break out above the technical resistance at the level of 0.7438. The immediate support is seen at the level of 0.7394, but any violation of this level would lead to immediate test of the local swing low at the level of 0.7328.

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The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com

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