16 Jan 2015
AUD/USD grappling with 0.82 handle; sights on the upside
FXStreet (Guatemala) - AUD/USD is currently trading at 0.8215 with a high of 0.8258 and a low of 0.8168 and down 0.12% on the day.
AUD/USD continues to grapple with the 0.82 handle having lost part of the bullishness post a score onto the 0.83 handle. The pair has been a grind to the downside from 0.8260 to 0.8168 and oscillates at 40% into the range now. Meanwhile, bets are still to the downside still longer term, with the aftermath of the SNB, analysts are predicting that the greenback will become the main benefactor of diversification of cash flows away from the Euro and CHF.
Moreover, the divergence between the RBA and Fed is a likely contender to weigh on the pair. The Fed are expected to hike rates between the middle of 2015 and into 2016 while the RBA maybe required to look at lowering rates, dependant on how data pans out over the course of this first quarter. Encouragingly we have already seen a very strong yet slightly dubious, jobs report with employment increasing ten fold on what had been expected for Decembers numbers.
Technically, the downtrend has slowed down, as evident on the daily sticks, and a break of 0.83 with conviction and closes would be required to encourage the upside up to 0.8550 for a correction. Karen Jones, chief analyst at Commerzbank highlighted areas of resistance on that route, "A close above here. " (0.8300), "...is needed to alleviate the bearish pressure and would initiate a deeper retracement to 0.8356/70 then 0.8472 (Fibonacci retracements)."
AUD/USD continues to grapple with the 0.82 handle having lost part of the bullishness post a score onto the 0.83 handle. The pair has been a grind to the downside from 0.8260 to 0.8168 and oscillates at 40% into the range now. Meanwhile, bets are still to the downside still longer term, with the aftermath of the SNB, analysts are predicting that the greenback will become the main benefactor of diversification of cash flows away from the Euro and CHF.
Moreover, the divergence between the RBA and Fed is a likely contender to weigh on the pair. The Fed are expected to hike rates between the middle of 2015 and into 2016 while the RBA maybe required to look at lowering rates, dependant on how data pans out over the course of this first quarter. Encouragingly we have already seen a very strong yet slightly dubious, jobs report with employment increasing ten fold on what had been expected for Decembers numbers.
Technically, the downtrend has slowed down, as evident on the daily sticks, and a break of 0.83 with conviction and closes would be required to encourage the upside up to 0.8550 for a correction. Karen Jones, chief analyst at Commerzbank highlighted areas of resistance on that route, "A close above here. " (0.8300), "...is needed to alleviate the bearish pressure and would initiate a deeper retracement to 0.8356/70 then 0.8472 (Fibonacci retracements)."