Aussie dollar finds solid support levels for now

Richard Driver at Caxton FX continues to back further gains in GBP-AUD on persistent expectations of an interest rate cut:

"Despite a blip in Asian confidence last night, global markets are pretty upbeat but the AUD remains unable to capitalise. Many will have one eye on next Monday night’s aussie inflation data, which will have a significant bearing on the likelihood of more interest rate cuts from the RBA.

"A 64% chance of a rate cut is currently being priced in for August, which supports our case for higher GBP/AUD levels.

Australian dollar establishes solid support levels

 While the Australian dollar isn't exactly excelling today, it is worth pointing out that it has certainly stabilised within the contact of recent declines.

Sean Lee at FXWWW says:

"Very solid bids are being reported below .9100 through .9050 in the AUD/USD. Talk of a barrier at 1.1500 in the AUD/NZD. Offers expected to be heavy in AUD/JPY above 93.00.

"Once again we need to watch the crosses closely in case big levels are neared in AUD/NZD or AUD/JPY. I’m becoming more bullish in AUD/USD and I think a base will soon develop so buy any dips onto the .9000 handle with stops below recent lows.

"Look for buying opportunities on exhaustive dips in the AUD/USD back towards .9050. Risk sentiment is turning positive, USD sentiment is wavering, and the market is positioned short AUD/USD. These sound like perfect ingredients for a big short-covering squeeze in coming weeks.

Are you looking to buy into the Aussie dollar? At what price? Did you know you can identify, follow and copy the best proven traders on the world's largest social trading setup and vastly increase your odds of success. To learn more please see here.

Australian dollar / New Zealand dollar exchange rate forecasted to see support grow

 Turning to the Australian dollar versus New Zealand dollar outlook, Sean Lee at FXWW says currency watchers should look for support to stiffen near 1.1500 for the AUD-NZD exchange rate:

"I'm hearing that there will be decent sized buying interest near 1.1500 and local dealers expect the Antipodean cross to struggle to break below this support any-time soon. Resistance is clear 1.1750/75 so further slow range trading with a bearish bias might be the order of the day."