18 Nov 2013
AUD/USD retakes 0.9400
FXstreet.com (Edinburgh) - The AUD/USD extends its bounce off overnight lows near 0.9360 to the current vicinity of 0.9400 the figure so far.
AUD/USD bolstered by risk, China
The risk-on trade is prevailing at the beginning of the week following positive results from the Chines House Price index, advancing 9.6% during October vs. 9.1% in the previous month. According to Westpac Global Strategy group, “Ms. Yellen’s dovish tone should keep risk assets underpinned near term, reducing the danger in US data such as Oct retail sales and CPI. This should mean the Aussie avoids a test of the 100dma around 0.9270/75 and at least early in the week edges up to 0.9430/50. But while retaining our 1 month call for 0.95-0.96, net gains this week should be constrained by RBA commentary and lukewarm commodity prices”. The next risk event for the AUD would be tomorrow’s RBA minutes, where an extension of the easing tone by the central bank would be in the limelight.
AUD/USD levels to watch
As of writing the pair is advancing 0.40% at 0.9409 with the immediate resistance at 0.9421 (low Nov.1) and then 0.9443 (MA50d). On the flip side, a break below 0.9305 (low Nov.15) would bring 0.9282 (low Nov.14).
AUD/USD bolstered by risk, China
The risk-on trade is prevailing at the beginning of the week following positive results from the Chines House Price index, advancing 9.6% during October vs. 9.1% in the previous month. According to Westpac Global Strategy group, “Ms. Yellen’s dovish tone should keep risk assets underpinned near term, reducing the danger in US data such as Oct retail sales and CPI. This should mean the Aussie avoids a test of the 100dma around 0.9270/75 and at least early in the week edges up to 0.9430/50. But while retaining our 1 month call for 0.95-0.96, net gains this week should be constrained by RBA commentary and lukewarm commodity prices”. The next risk event for the AUD would be tomorrow’s RBA minutes, where an extension of the easing tone by the central bank would be in the limelight.
AUD/USD levels to watch
As of writing the pair is advancing 0.40% at 0.9409 with the immediate resistance at 0.9421 (low Nov.1) and then 0.9443 (MA50d). On the flip side, a break below 0.9305 (low Nov.15) would bring 0.9282 (low Nov.14).