26 May 2014
AUD/USD: Early momentum fades, 0.9250 hurdle intact
FXStreet (Bali) - AUD/USD is trading with a slightly firmer tone on Monday, presently at 0.9236 off a session high at 0.9243 - same peak as last NY session - and versus a Friday's close of 0.9230.
Last week's price action revealed an important technical advance by the AUD bear community, taking the exchange rate towards a channel support off Jan lows, and also breaking in the process the always important 50-day exponential moving average. Besides, the inability to keep gains after the upbeat Chinese HSBC PMI, does not bode well for the Australian Dollar.
According to Jim Langlands, Founder at FX Charts: "It does look heavy though, and with last Thursday’s strong China manufacturing data unable to produce anything more than a temporary blip higher for the Aud, to 0.9273, it does look as though we are eventually in for a retest of the downside."
Last week's price action revealed an important technical advance by the AUD bear community, taking the exchange rate towards a channel support off Jan lows, and also breaking in the process the always important 50-day exponential moving average. Besides, the inability to keep gains after the upbeat Chinese HSBC PMI, does not bode well for the Australian Dollar.
According to Jim Langlands, Founder at FX Charts: "It does look heavy though, and with last Thursday’s strong China manufacturing data unable to produce anything more than a temporary blip higher for the Aud, to 0.9273, it does look as though we are eventually in for a retest of the downside."