7 Feb 2014
AUD/USD clings to 0.8940
FXStreet (Córdoba) - Following a week of steep gains, underpinned by the RBA shift of rhetoric and strong Australian data, the AUD/USD faced corrective flows ahead of the US nonfarm payrolls report.
AUD/USD contained by 50-day SMA
The AUD/USD slid to the 0.8920 area during the Asian session, pulling back from a 3-week high of 0.8980 scored the previous day, but the 50-day SMA contained the downside. The pair managed to stabilize in a range within 0.8930-50 during the European session and at time of writing, it is trading at the 0.8940 zone, 0.2% below its opening price.
"The talk of an option expiry at 0.8940 for 2 yards (billion) worth of Aussie at 10am New York has managed to keep Aussie in a tight range", said Matt Bacon-Hall, analyst at FXBeat. "We have seen 0.8936-0.8952 this morning, and I don't expect a breakout until NFP. Rumour has it stop loss city occurs above 0.9000, and with the market structured short it wouldn't surprise me".
AUD/USD technical levels
As for technical levels, the AUD/USD could find immediate resistances at 0.8980 (Feb 6 high), 0.9000 (psychological level) and 0.9057 (Jan 14 high). On the downside, supports are seen at 0.8920 (50-day SMA), 0.8908 (Feb 6 low) and 0.8873 (Feb 5 low).
AUD/USD contained by 50-day SMA
The AUD/USD slid to the 0.8920 area during the Asian session, pulling back from a 3-week high of 0.8980 scored the previous day, but the 50-day SMA contained the downside. The pair managed to stabilize in a range within 0.8930-50 during the European session and at time of writing, it is trading at the 0.8940 zone, 0.2% below its opening price.
"The talk of an option expiry at 0.8940 for 2 yards (billion) worth of Aussie at 10am New York has managed to keep Aussie in a tight range", said Matt Bacon-Hall, analyst at FXBeat. "We have seen 0.8936-0.8952 this morning, and I don't expect a breakout until NFP. Rumour has it stop loss city occurs above 0.9000, and with the market structured short it wouldn't surprise me".
AUD/USD technical levels
As for technical levels, the AUD/USD could find immediate resistances at 0.8980 (Feb 6 high), 0.9000 (psychological level) and 0.9057 (Jan 14 high). On the downside, supports are seen at 0.8920 (50-day SMA), 0.8908 (Feb 6 low) and 0.8873 (Feb 5 low).