16 Oct 2013
AUD/USD spikes 0.9560
FXstreet.com (Edinburgh) -The strong demand for the Aussie dollar keeps pushing the AUD/USD higher on Wednesday, hovering over 0.9555/60, levels last seen in June.
AUD/USD firmer beyond 0.9500
The pair is advancing for the third consecutive week so far, and posted gains in six out of the last seven weeks, climbing from multi-year lows below 0.8900 the figure. The extreme short positioning and the new neutral bias (at least not dovish) from the RBA have collaborated in the noticeable upside. Christin Tuxen, Analyst at Danske Bank, suggested, “With a USD trough in sight, the potential for AUD/USD to edge lower thus remains in place. On a 3-6M horizon AUD/USD could remain under pressure as the struggling non-mining sector in Australia contrasts with a decent US outlook and the RBA and the Fed are likely to act accordingly”.
AUD/USD levels to watch
The pair is now advancing 0.31% at 0.9552 with the next resistance at 0.9569 (76.4% of 0.9792-0.8848). On the flip side, a breakdown of 0.9499 (low Oct.16) would open the door to 0.9476 (low Oct.15) and finally 0.9462 (MA10d).
AUD/USD firmer beyond 0.9500
The pair is advancing for the third consecutive week so far, and posted gains in six out of the last seven weeks, climbing from multi-year lows below 0.8900 the figure. The extreme short positioning and the new neutral bias (at least not dovish) from the RBA have collaborated in the noticeable upside. Christin Tuxen, Analyst at Danske Bank, suggested, “With a USD trough in sight, the potential for AUD/USD to edge lower thus remains in place. On a 3-6M horizon AUD/USD could remain under pressure as the struggling non-mining sector in Australia contrasts with a decent US outlook and the RBA and the Fed are likely to act accordingly”.
AUD/USD levels to watch
The pair is now advancing 0.31% at 0.9552 with the next resistance at 0.9569 (76.4% of 0.9792-0.8848). On the flip side, a breakdown of 0.9499 (low Oct.16) would open the door to 0.9476 (low Oct.15) and finally 0.9462 (MA10d).