12 May 2015
AUD/USD testing highs near 0.7940, Aus budget in focus
FXStreet (Mumbai) - The Australian dollar extends gains from Asia against the US dollar heading towards European opening bells, with AUD/USD firming above 0.79 handle, as traders continue to cheer upbeat Australian home loans data as also Fitch ratings confirmation. While the key focus remains the Australian annual budget release due later today.
AUD/USD climbs from 0.7915
Currently, the AUD/USD pair rose nearly 0.50% and trades at 0.7933, hovering close to fresh session highs reached at 0.7940 some minutes ago. AUD/USD extends tis upbeat momentum with eyes set on 0.80 crucial barrier as the Aussie remains boosted following above estimates Australian home loans data.
Australian home loans registered 1.6% in March, beating expectations of 1%, while the investment lending for homes increased to 6.4% in March from previous -3.4%.
Moreover, Fitch’s confirmation that Australia’s AAA rating is not at risk for now also pushed the AUD/USD pair higher. Meanwhile, AUD traders will now focus on the Australian Annual Budget release due in the European session.
Analysts at Rabobank noted, "Recall that last year’s austerity budget went down like a lead balloon with the public, seeing a collapse in consumer confidence: yet with revenue slumping due to slower growth, unless Mr. Hockey is uncharacteristically willing to countenance an expansion in the fiscal deficit, we might see yet more of the same harsh medicine.”
“The silver lining here is that the tighter fiscal policy gets, the more comfortable the RBA will be about cutting again."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7952 (May 11 High) levels, above which gains could be extended to 0.7974 (May 8 High) levels. On the flip side, support is seen at 0.7887 (Today’s Low) levels from here it to 0.7859 (May 8 Low) levels.
AUD/USD climbs from 0.7915
Currently, the AUD/USD pair rose nearly 0.50% and trades at 0.7933, hovering close to fresh session highs reached at 0.7940 some minutes ago. AUD/USD extends tis upbeat momentum with eyes set on 0.80 crucial barrier as the Aussie remains boosted following above estimates Australian home loans data.
Australian home loans registered 1.6% in March, beating expectations of 1%, while the investment lending for homes increased to 6.4% in March from previous -3.4%.
Moreover, Fitch’s confirmation that Australia’s AAA rating is not at risk for now also pushed the AUD/USD pair higher. Meanwhile, AUD traders will now focus on the Australian Annual Budget release due in the European session.
Analysts at Rabobank noted, "Recall that last year’s austerity budget went down like a lead balloon with the public, seeing a collapse in consumer confidence: yet with revenue slumping due to slower growth, unless Mr. Hockey is uncharacteristically willing to countenance an expansion in the fiscal deficit, we might see yet more of the same harsh medicine.”
“The silver lining here is that the tighter fiscal policy gets, the more comfortable the RBA will be about cutting again."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7952 (May 11 High) levels, above which gains could be extended to 0.7974 (May 8 High) levels. On the flip side, support is seen at 0.7887 (Today’s Low) levels from here it to 0.7859 (May 8 Low) levels.