7 Sep 2015
AUD/USD downside remains compelling below 0.6980/00
FXStreet (Guatemala) - AUD/USD is consolidated after last week's supply in a steady drift lower to start the month of September leading into the keenly eyed FOMC and subsequent rate decision on the 17th of the month.
It was a disappointing week for the Aussie bulls, losing territory on 0.7150 and ending the week below the support of 0.6980/00 testing the downside of the 0.69 level, finally marking a low of 0.6908. The data from Australia had been a series of negative releases while the RBA left rates on hold, leaving the door open still for the rest of the year while they monitor the price of the currency, global macro events and subsequent impact to the Australian economy.
After a series of downbeat data, the final blow to the downside came from the Nonfarm Payrolls results. While the report was offering a mixed release, the main takeaway was bullish and increased demand for the greenback. There was a positive revision to the July report of +44k that also had a reduction of the unemployment rate which was also encouraging and leaves September FOMC a close call.
Week ahead for AUD/USD is key
For the week ahead, we will monitor the NAB's business confidence, Westpac consumer confidence, home loans data and the key employment and unemployment report. China also returns after a 4-session break which may be eventful. China will report CPI this week as well as the PBoC reserves from August which will be of interest to gauge what was spent to keep market volatility to a minimum.
AUD/USD's June 2004 lows exposed
Technically, the key 6970 level and 3 month support line was breached after a number of tests last week below the 0.70 handle. This close now leaves the downside further exposed and brings in the June 2004 low in o focus at 0.6776.
It was a disappointing week for the Aussie bulls, losing territory on 0.7150 and ending the week below the support of 0.6980/00 testing the downside of the 0.69 level, finally marking a low of 0.6908. The data from Australia had been a series of negative releases while the RBA left rates on hold, leaving the door open still for the rest of the year while they monitor the price of the currency, global macro events and subsequent impact to the Australian economy.
After a series of downbeat data, the final blow to the downside came from the Nonfarm Payrolls results. While the report was offering a mixed release, the main takeaway was bullish and increased demand for the greenback. There was a positive revision to the July report of +44k that also had a reduction of the unemployment rate which was also encouraging and leaves September FOMC a close call.
Week ahead for AUD/USD is key
For the week ahead, we will monitor the NAB's business confidence, Westpac consumer confidence, home loans data and the key employment and unemployment report. China also returns after a 4-session break which may be eventful. China will report CPI this week as well as the PBoC reserves from August which will be of interest to gauge what was spent to keep market volatility to a minimum.
AUD/USD's June 2004 lows exposed
Technically, the key 6970 level and 3 month support line was breached after a number of tests last week below the 0.70 handle. This close now leaves the downside further exposed and brings in the June 2004 low in o focus at 0.6776.