10 Feb 2015
AUD/USD: Turns on head post Chinese rally; 0.7720 support is key
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7776 with a high of 0.7843 and a low of 0.7746.
AUD/USD was eventually offered and set back from 0.7843 highs overnight in Asia post the rally on the Chinese CPI and PPI data which opened up potential avenues for further easing from the PBoC, which sights liquidity into the Aussie. However, turning on its head, we arrived down through the 0.78 handle and into full supply on dollar strength to 0.7759 ahead of a minor bounce to 0.78 again before a chop to 0.7745 and up again to test space at 0.7790 where we are left capped and trading slightly lower in a drift.
Recalling the selloff from last week's business down to test territory just ahead of the base of the 2013-2015 down channel at 0.7597, committed bears will be looking to fade such activity as overnight and have the recent lows in target on the basis of speculation around further divergence between the RBA and Fed yet to come. Karen Jones, chief analyst at Commerzbank said, "Below 0.7597 we have very little support apart from the 0.7335, 50% retracement of the move up from 2001. Support at 0.7720 guards the 0.7627 recent low."
AUD/USD was eventually offered and set back from 0.7843 highs overnight in Asia post the rally on the Chinese CPI and PPI data which opened up potential avenues for further easing from the PBoC, which sights liquidity into the Aussie. However, turning on its head, we arrived down through the 0.78 handle and into full supply on dollar strength to 0.7759 ahead of a minor bounce to 0.78 again before a chop to 0.7745 and up again to test space at 0.7790 where we are left capped and trading slightly lower in a drift.
Recalling the selloff from last week's business down to test territory just ahead of the base of the 2013-2015 down channel at 0.7597, committed bears will be looking to fade such activity as overnight and have the recent lows in target on the basis of speculation around further divergence between the RBA and Fed yet to come. Karen Jones, chief analyst at Commerzbank said, "Below 0.7597 we have very little support apart from the 0.7335, 50% retracement of the move up from 2001. Support at 0.7720 guards the 0.7627 recent low."