9 May 2014
AUD/USD looks for direction near 0.9360
FXStreet (Edinburgh) - The Aussie dollar is trying to consolidate around 0.9360 at the end of the week, with the AUD/USD coming down from yesterday’s peaks above 0.9390.
AUD/USD lower on profit taking
The session is dominated by a sentiment towards the profit taking in the AUD. Of note however, was the release of the quarterly Statement on Monetary Policy by the RBA, where the central bank revised down its projections for economic growth and inflation although the impact on spot was unperceivable. “At the margin, this is a somewhat more dovish statement reflecting more fiscal and currency/commodity prices trends. It suggests that rates may be held steady for a long time. It also argues for some lowering of 2- to 3-year yields and flattening of the curve. At the margin, this dampens the AUD, but it is difficult to sell AUD when it offers a stable and relatively attractive yield”, suggested Greg Gibbs, FX Trading Strategist at RBS.
AUD/USD key levels
The pair is now down 0.15% at 0.9363 and a breach of 0.9227 (low Apr.29) would aim for 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the flip side, the initial resistance aligns at 0.9427 (high Apr.11) ahead of 0.9461 (high Apr.10) and then 0.9500 (psychological level).
AUD/USD lower on profit taking
The session is dominated by a sentiment towards the profit taking in the AUD. Of note however, was the release of the quarterly Statement on Monetary Policy by the RBA, where the central bank revised down its projections for economic growth and inflation although the impact on spot was unperceivable. “At the margin, this is a somewhat more dovish statement reflecting more fiscal and currency/commodity prices trends. It suggests that rates may be held steady for a long time. It also argues for some lowering of 2- to 3-year yields and flattening of the curve. At the margin, this dampens the AUD, but it is difficult to sell AUD when it offers a stable and relatively attractive yield”, suggested Greg Gibbs, FX Trading Strategist at RBS.
AUD/USD key levels
The pair is now down 0.15% at 0.9363 and a breach of 0.9227 (low Apr.29) would aim for 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the flip side, the initial resistance aligns at 0.9427 (high Apr.11) ahead of 0.9461 (high Apr.10) and then 0.9500 (psychological level).