23 Aug 2013
AUD/USD completes ABC correction higher; downside to 0.8937 next
FXstreet.com (Barcelona) - The AUD/USD bounced Thursday in reaction to better-than-expected Chinese PMI data early in the session. The rally, however, stalled out right at the 100% Fibonacci price projection for what technicians are saying is an “ABC” upside correction.
AUD/USD will monitor Jackson Hole happenings and US new home sales
The Chinese PMI data came in Thursday well above expectations at 50.1 vs. 48.3 expectations and vs. 47.7 the previous month. The data boosted the AUD/USD temporarily, but did not provided enough fuel for the cross to break through “correction resistance” at 0.90410.
AUD/USD traders will be eyeing the Jackson Hole meeting for any new developments and will need to monitor the US New Home Sales data due out at 14:00 GMT on Friday.
Technical outlook for AUD/USD
Coming into Thursday, technicians said resistance for any short-term rally will come in at 0.9058 – which turned out to be fairly accurate. That level remains resistance and is backed up by 0.9057 – the peak from 19:00 GMT on Wednesday. The downside target for AUD/USD comes in at 0.8937 and could possibly be stretched out to 0.8911 if things get real bad for AUD or real bullish for the DXY.
AUD/USD will monitor Jackson Hole happenings and US new home sales
The Chinese PMI data came in Thursday well above expectations at 50.1 vs. 48.3 expectations and vs. 47.7 the previous month. The data boosted the AUD/USD temporarily, but did not provided enough fuel for the cross to break through “correction resistance” at 0.90410.
AUD/USD traders will be eyeing the Jackson Hole meeting for any new developments and will need to monitor the US New Home Sales data due out at 14:00 GMT on Friday.
Technical outlook for AUD/USD
Coming into Thursday, technicians said resistance for any short-term rally will come in at 0.9058 – which turned out to be fairly accurate. That level remains resistance and is backed up by 0.9057 – the peak from 19:00 GMT on Wednesday. The downside target for AUD/USD comes in at 0.8937 and could possibly be stretched out to 0.8911 if things get real bad for AUD or real bullish for the DXY.