13 Aug 2015
AUD/USD: price rallies on broad weakness in USD and PBoC
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7380 with a high of 0.7389 and a low of 0.7372.
AUD/USD has staged a big recovery as markets begin to digest the implications of the Yuan devaluations from the PBoC, extending the previous gains that were subsequent of Deputy Governor Philip Lowe's comments where it was implied there may not be further rate cuts for fears of rising household debt. The greenback felt the pain on implications of the PBoC's recent intervention as investors begin to sell-out of positions stacked in favour of a Fed rate hike as early as September.
AUD/USD subsequent price action
AUD/USD bottomed yesterday at 0.7215 when the major collapsed from 0.7320 before entering a sideways drift that eventually garnered demand until aforementioned drop zone until 0.7280 support where further demand came in and took the pair to meet territory just shy of the psychological 0.74 handle at 0.7387.
AUD/USD key levels
Technically, on further supply, the key support area is marked as being 0.7235 July lows and recent 0.7215 August low so far. Below there, the two year channel support at 0.7188 and the long term Fibonacci retracement at 0.7185 guards and the 14 year support line at 0.7144. For the upside, a break of the 0.74 handle and on to the 23.6% Fibonacci retracement at 0.7454 could open a trigger recovery up to test the 0.7534 55 day moving average.
AUD/USD has staged a big recovery as markets begin to digest the implications of the Yuan devaluations from the PBoC, extending the previous gains that were subsequent of Deputy Governor Philip Lowe's comments where it was implied there may not be further rate cuts for fears of rising household debt. The greenback felt the pain on implications of the PBoC's recent intervention as investors begin to sell-out of positions stacked in favour of a Fed rate hike as early as September.
AUD/USD subsequent price action
AUD/USD bottomed yesterday at 0.7215 when the major collapsed from 0.7320 before entering a sideways drift that eventually garnered demand until aforementioned drop zone until 0.7280 support where further demand came in and took the pair to meet territory just shy of the psychological 0.74 handle at 0.7387.
AUD/USD key levels
Technically, on further supply, the key support area is marked as being 0.7235 July lows and recent 0.7215 August low so far. Below there, the two year channel support at 0.7188 and the long term Fibonacci retracement at 0.7185 guards and the 14 year support line at 0.7144. For the upside, a break of the 0.74 handle and on to the 23.6% Fibonacci retracement at 0.7454 could open a trigger recovery up to test the 0.7534 55 day moving average.