20 Nov 2013
AUD/USD spikes on Bernanke, finds offers ahead of 0.9450
FXstreet.com (Barcelona) - AUD/USD has been able to make a marginal new high at 0.9445 before sellers stepped in to pull back prices towards 0.9430, with potential retest of 0.9420 support in sight.
AUD drivers
As Jim Langlands, Founder at FXCharts, notes: "The Aud has recovered on the news that China planned to end regular FX interventions and to allow the Yuan to trade more freely in an extended band. The PBOC added that it would cut the ratio of US Treasuries that it holds to maturity, leading to speculation that the ultimate goal is reserve diversification out of the US$, which gave the Aud its positive momentum as a potential recipient. Don’t get excited. This could take years!"
AUD/USD technicals
Langlands sees the low time frames constructive for further gains: "The 4 hour charts look positive for further gains and if the session high can be overcome, we should look for a run towards 0.9453 (38.2% of 0.9757/0.9268) and then 0.9480 (minor), 0.9500 and 0.9512 (50% of 0.9757/0.9268). Above that would see a run towards the Nov 6 high at 0.9543."
AUD drivers
As Jim Langlands, Founder at FXCharts, notes: "The Aud has recovered on the news that China planned to end regular FX interventions and to allow the Yuan to trade more freely in an extended band. The PBOC added that it would cut the ratio of US Treasuries that it holds to maturity, leading to speculation that the ultimate goal is reserve diversification out of the US$, which gave the Aud its positive momentum as a potential recipient. Don’t get excited. This could take years!"
AUD/USD technicals
Langlands sees the low time frames constructive for further gains: "The 4 hour charts look positive for further gains and if the session high can be overcome, we should look for a run towards 0.9453 (38.2% of 0.9757/0.9268) and then 0.9480 (minor), 0.9500 and 0.9512 (50% of 0.9757/0.9268). Above that would see a run towards the Nov 6 high at 0.9543."