2 Sep 2013
AUD/USD hits 0.9000 as upside sharpens
FXstreet.com (Edinburgh) -The bid tone around the Aussie dollar is lifting the AUD/USD to finally test the key 0.9000 handle on Monday, extending the correction higher from last week’s lows below 0.8900 the figure.
AUD/USD focus on RBA meeting on Tuesday
Today’s better tone in the pair comes alongside the improvement of the Chinese manufacturing PMI in August and the good results from the domestic Building Permits, ahead of the RBA monetary policy gathering due tomorrow. Regarding the AUD, Greg Gibbs, Strategist at RBS, noted “It faces challenges over the next one to three years as the economy transitions through a mining investment boom that has peaked. It remains expensive, and thus we expect moderate further declines… There is risk of a period of undershoot in the next year, and it continues to depend heavily on the Chinese fixed investment growth that appears in need of structural adjustment lower”.
AUD/USD levels to consider
As of writing the pair is advancing 0.63% at 0.9000 facing the next resistance at 0.9028 (MA10d). On the flip side, a breakdown of 0.8891 (low Aug.28) would expose 0.8848 (2013 low Aug.5) and then 0.8846 (low Aug.27 2010).
AUD/USD focus on RBA meeting on Tuesday
Today’s better tone in the pair comes alongside the improvement of the Chinese manufacturing PMI in August and the good results from the domestic Building Permits, ahead of the RBA monetary policy gathering due tomorrow. Regarding the AUD, Greg Gibbs, Strategist at RBS, noted “It faces challenges over the next one to three years as the economy transitions through a mining investment boom that has peaked. It remains expensive, and thus we expect moderate further declines… There is risk of a period of undershoot in the next year, and it continues to depend heavily on the Chinese fixed investment growth that appears in need of structural adjustment lower”.
AUD/USD levels to consider
As of writing the pair is advancing 0.63% at 0.9000 facing the next resistance at 0.9028 (MA10d). On the flip side, a breakdown of 0.8891 (low Aug.28) would expose 0.8848 (2013 low Aug.5) and then 0.8846 (low Aug.27 2010).