Global macro overview for 22/11/2016:The Reserve Bank of Australia assistant governor Christopher Kent said early this morning in a speech at the Australian Business Economists Conference Dinner, that he sees a reasonable prospect for overall strong economic growth that would push inflation up to normal levels. Moreover, he mentioned his concerns regarding high home prices in Australia, but he added that household debt is still a risk, but less than last year. Regarding the high commodity prices, like cooking coal, he said it is unlikely that higher commodity prices will lead to mining investment pick-up. In conclusion, quite hawkish and positive comments from Kent should support the positive sentiment and positive outlook for the Australian economy.
Let's now take a look at the AUD/USD technical picture in the daily time frame. After the market has violated the golden trend line, the lower levels of support are being tested. The price is trading below all of the moving averages. Meanwhile, the bulls don't look strong enough to break back above the level of 0.7419. As long as this level is not broken, the bears have full control over this market and the next support is seen at the level of 0.7285.
