11 Jul 2014
AUD/USD should hold up due to low US yields
FXStreet (Guatemala) - AUD/USD is trading at 0.9388, down -0.14% on the day, having posted a daily high at 0.9398 and low at 0.9377.
AUD/USD is trading in a narrow range still after a busy week. The calendar for the week has just concluded with a more positive result for month on month in May’s housing finance approvals, but remains at the lower end of the past few global sessions range still. “While AUD seemed to be hurt by follow-through from the lukewarm jobs data, the main driver appeared to be news a Portuguese banking group missed payments on commercial paper to some investors”, explained Sean Callow, analyst at Westpac Banking Corporation ABN. “If the strong US jobs data couldn’t inspire higher yields and USD, it is hard to see a major turning point in the week ahead. This feeds into the reserve accumulation that produces spillover demand for the likes of AUD, despite its apparent overvaluation. RBA rate cut chatter should keep AUD soft on crosses but AUD/USD should hold up OK”
AUD/USD Levels
Spot is presently trading at 0.9388, and next resistance can be seen at 0.9389 (Daily Classic S1), 0.9391 (Daily 20 SMA) and 0.9394 (Daily Open). Next support to the downside can be found at 0.9377 (Daily Low), 0.9363 (Daily Classic S2), 0.9361 (Yesterday's Low), 0.9347 (Weekly Low) and 0.9345 (Daily Classic S3).
AUD/USD is trading in a narrow range still after a busy week. The calendar for the week has just concluded with a more positive result for month on month in May’s housing finance approvals, but remains at the lower end of the past few global sessions range still. “While AUD seemed to be hurt by follow-through from the lukewarm jobs data, the main driver appeared to be news a Portuguese banking group missed payments on commercial paper to some investors”, explained Sean Callow, analyst at Westpac Banking Corporation ABN. “If the strong US jobs data couldn’t inspire higher yields and USD, it is hard to see a major turning point in the week ahead. This feeds into the reserve accumulation that produces spillover demand for the likes of AUD, despite its apparent overvaluation. RBA rate cut chatter should keep AUD soft on crosses but AUD/USD should hold up OK”
AUD/USD Levels
Spot is presently trading at 0.9388, and next resistance can be seen at 0.9389 (Daily Classic S1), 0.9391 (Daily 20 SMA) and 0.9394 (Daily Open). Next support to the downside can be found at 0.9377 (Daily Low), 0.9363 (Daily Classic S2), 0.9361 (Yesterday's Low), 0.9347 (Weekly Low) and 0.9345 (Daily Classic S3).