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7 Jan 2014
AUD/USD is under selling pressure
FXstreet.com (Moscow) - AUD/USD got under selling pressure during early Asian hours as the pair touched the intraday low at 0.8917 after opening at 0.8963.
Don’t cherish illusions about AUD
Don’t get carried away by the AUD rise at the start of the year. The Australian currency has just shown us what the "buy the rumor, sell the fact» game is all about. The trade balance report published earlier today shows that the deficit shrank to A$118 million in November from a revised A$358 million the previous month. The data came out better than expected, but the AUD performed a nose dive as the improvement was priced in. Export grew slightly to 27.38 mlm. from 27.27 while import shrank to 27.49 from 27.80 in November. That is certainly inspiring, but the budget deficit may continue to widen due to capital outflows caused by risk aversion in the end of 2013. What’s more, the RBA governor is quite explicit about the AUD strengthening. He would be happy to see it much lower. The rally has already stalled and the chances that the bulls will regain control of the situation are fading away. Watch out for 0.8900 support level, once it is broken, the downside may accelerate.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8962, with support below at 0.8941, 0.8912 and 0.8891, with resistance above at 0.8991, 0.9012, and 0.9041 Hourly Moving Averages are mixed, with the 200SMA at 0.8916 and the daily 20EMA at 0.8960. Hourly RSI is neutral at 40.79.
Don’t cherish illusions about AUD
Don’t get carried away by the AUD rise at the start of the year. The Australian currency has just shown us what the "buy the rumor, sell the fact» game is all about. The trade balance report published earlier today shows that the deficit shrank to A$118 million in November from a revised A$358 million the previous month. The data came out better than expected, but the AUD performed a nose dive as the improvement was priced in. Export grew slightly to 27.38 mlm. from 27.27 while import shrank to 27.49 from 27.80 in November. That is certainly inspiring, but the budget deficit may continue to widen due to capital outflows caused by risk aversion in the end of 2013. What’s more, the RBA governor is quite explicit about the AUD strengthening. He would be happy to see it much lower. The rally has already stalled and the chances that the bulls will regain control of the situation are fading away. Watch out for 0.8900 support level, once it is broken, the downside may accelerate.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8962, with support below at 0.8941, 0.8912 and 0.8891, with resistance above at 0.8991, 0.9012, and 0.9041 Hourly Moving Averages are mixed, with the 200SMA at 0.8916 and the daily 20EMA at 0.8960. Hourly RSI is neutral at 40.79.