4 Jun 2015
AUD/USD lost its bottle
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7685 with a high of 0.7781 and a low of 0.7663.
AUD/USD's downside is now fully in play, with offers down through the pivot and finding support at the familiar 0.7660 resistance line occurring at the end of last month on the minor recovery of the major downside trend of mid May peaks at 0.8160. The downside from 0.7812 peak of the June rally came on the back of the trade figures and retail sales coming out overnight and missing expectations. Retails were down to 0.0% vs 0/45 expected while Trade came as a huge -3,888m vs -2,250m and worst deficit since 1995.
AUD/USD's shine is now in the distance and the less committed bulls have lost their bottle while otherwise the major had been performing strongly on the back of the RBA leaving rates on hold recently accompanied with GDP Q1 beating expectations. Technically, Karen Jones, chief analyst at Commerzbank explained that AUD/USD’s correction higher appears to have terminated circa 0.7815/18, the 38.2% retracement and they look for further weakness. "We are viewing this as a near term rebound ahead of further losses to the .7534 April low. Beyond here lies the base of the 2 year down channel at 0.7390."
AUD/USD's downside is now fully in play, with offers down through the pivot and finding support at the familiar 0.7660 resistance line occurring at the end of last month on the minor recovery of the major downside trend of mid May peaks at 0.8160. The downside from 0.7812 peak of the June rally came on the back of the trade figures and retail sales coming out overnight and missing expectations. Retails were down to 0.0% vs 0/45 expected while Trade came as a huge -3,888m vs -2,250m and worst deficit since 1995.
AUD/USD's shine is now in the distance and the less committed bulls have lost their bottle while otherwise the major had been performing strongly on the back of the RBA leaving rates on hold recently accompanied with GDP Q1 beating expectations. Technically, Karen Jones, chief analyst at Commerzbank explained that AUD/USD’s correction higher appears to have terminated circa 0.7815/18, the 38.2% retracement and they look for further weakness. "We are viewing this as a near term rebound ahead of further losses to the .7534 April low. Beyond here lies the base of the 2 year down channel at 0.7390."