23 Apr 2014
AUD/USD remains in the dumps
FXStreet (Guatemala) - Currently, AUD/USD is trading at 0.9287, down -0.82% on the day, having posted a daily high at 0.9379 and low at 0.9267.
Jane Foley, Senior Currency Strategist at Rabobank explained that the triggers for the sell off in the AUD were two fold. “The markit/HSBC Chinese manufacturing PMI data for April showed another contraction which rubbed salt into the AUD’s wounds. Minutes before this release, the AUD had been hit by the weaker than expected release of Australian Q1 CPI inflation data”. She went onto suggest that beating in mind the weakness in CAPEX, the likelihood of a prolonged period of steady RBA rates and the vulnerability of Australia to slower growth in China they see risk that AUD/USD could end the year in the 0.88 region.
AUD/USD neutral conditions
Meanwhile, the FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Currently RSI is at 58.78, up from the last hourly print at 39.90 and looking at price patterns, we can see a Doji 4-hour candlestick formation.
AUD/USD Levels
Current price is 0.9288, with resistance ahead at 0.9294 (Hourly 20 EMA), 0.9296 (Weekly Classic S1), 0.9297 (Daily Classic S2), 0.9301 (Daily 20 SMA) and 0.9322 (Yesterday's Low). Next support to the downside can be found at 0.9273 (Daily Classic S3), 0.9267 (Daily Low), 0.9254 (Weekly Classic S2), 0.9188 (Weekly Classic S3) and 0.9151 (Daily 200 SMA).
Jane Foley, Senior Currency Strategist at Rabobank explained that the triggers for the sell off in the AUD were two fold. “The markit/HSBC Chinese manufacturing PMI data for April showed another contraction which rubbed salt into the AUD’s wounds. Minutes before this release, the AUD had been hit by the weaker than expected release of Australian Q1 CPI inflation data”. She went onto suggest that beating in mind the weakness in CAPEX, the likelihood of a prolonged period of steady RBA rates and the vulnerability of Australia to slower growth in China they see risk that AUD/USD could end the year in the 0.88 region.
AUD/USD neutral conditions
Meanwhile, the FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Currently RSI is at 58.78, up from the last hourly print at 39.90 and looking at price patterns, we can see a Doji 4-hour candlestick formation.
AUD/USD Levels
Current price is 0.9288, with resistance ahead at 0.9294 (Hourly 20 EMA), 0.9296 (Weekly Classic S1), 0.9297 (Daily Classic S2), 0.9301 (Daily 20 SMA) and 0.9322 (Yesterday's Low). Next support to the downside can be found at 0.9273 (Daily Classic S3), 0.9267 (Daily Low), 0.9254 (Weekly Classic S2), 0.9188 (Weekly Classic S3) and 0.9151 (Daily 200 SMA).