13 Jul 2015
AUD/USD recovers Grexit feared bearish opeing gap
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7425 with a high of 0.7439 and a low of 0.7421.
AUD/USD has closed the bearish gap that came of in the open as the summit of all 28 European Union members that has been planned for Sunday was been cancelled. There have been very difficult Greek talks over a third bailout deal for Greece.
AUD/USD price action
AUD/USD dropped to the 0.7413 level after Fridays closing price in the US of 0.7437 and then recovered to 0.7428, until further set backs and minor volatility in a narrow chop which is now trading with a bearish bias again.
AUD/USD fundamentals
Besides the Greek debacle, where the saga continues as a Greek talks broke down again and the EU was subsequently canceled, China is back in focus and some analysts say that China may make Greece look like a sideshow.
The alarming weakness of the Chinese economy has eyes on the GDP that will arrive this week for China that may confirm fears of a sharper downturn and express fears for the economies outlook. Markets are on the look out for a real annualised figure of 7 per cent for the second-quarter, which would be consistent with official guidance for growth in 2015. 1.3 per cent for Q/Q was the previous.
We recently had a spectacular sell-off in the Chinese equities earlier on this month, which bought about the intervention from the PBoC. Today, we await the trade balance data for China. Meanwhile, iron ore managed to stage a recovery after a 10 day losing streak where the prices were at record lows, pressuring the Aussie.
Separately, Yellen stated on Friday (US) that rates would be going up this year at some stage but noted that there are still room for risks, including Greece that is a very uncertain situation.
AUD/USD technically bearish
AUD/USD is making a minor recovery, and Valeria Bednarik, chief analyst at FXStreet explained AUD/USD comes with a limited bearish tone in the 4 hours chart, as the price is now a few pips below its 20 SMA, whilst the technical indicators have turned lower, but are still in positive territory. "Given that stocks markets may come under strong pressure along with commodities later on in the day, the risk is towards the downside, with a break below 0.7400 favoring an extension to fresh multi-year lows in the 0.7300/30 region."
Karen Jones, chief analyst at Commerzbank explained that their bearish outlook also while they look for losses to the base of the 2 year channel at 0.7193 longer term. "Near term the market remains offered below the 0.7675 short term resistance line."
AUD/USD has closed the bearish gap that came of in the open as the summit of all 28 European Union members that has been planned for Sunday was been cancelled. There have been very difficult Greek talks over a third bailout deal for Greece.
AUD/USD price action
AUD/USD dropped to the 0.7413 level after Fridays closing price in the US of 0.7437 and then recovered to 0.7428, until further set backs and minor volatility in a narrow chop which is now trading with a bearish bias again.
AUD/USD fundamentals
Besides the Greek debacle, where the saga continues as a Greek talks broke down again and the EU was subsequently canceled, China is back in focus and some analysts say that China may make Greece look like a sideshow.
The alarming weakness of the Chinese economy has eyes on the GDP that will arrive this week for China that may confirm fears of a sharper downturn and express fears for the economies outlook. Markets are on the look out for a real annualised figure of 7 per cent for the second-quarter, which would be consistent with official guidance for growth in 2015. 1.3 per cent for Q/Q was the previous.
We recently had a spectacular sell-off in the Chinese equities earlier on this month, which bought about the intervention from the PBoC. Today, we await the trade balance data for China. Meanwhile, iron ore managed to stage a recovery after a 10 day losing streak where the prices were at record lows, pressuring the Aussie.
Separately, Yellen stated on Friday (US) that rates would be going up this year at some stage but noted that there are still room for risks, including Greece that is a very uncertain situation.
AUD/USD technically bearish
AUD/USD is making a minor recovery, and Valeria Bednarik, chief analyst at FXStreet explained AUD/USD comes with a limited bearish tone in the 4 hours chart, as the price is now a few pips below its 20 SMA, whilst the technical indicators have turned lower, but are still in positive territory. "Given that stocks markets may come under strong pressure along with commodities later on in the day, the risk is towards the downside, with a break below 0.7400 favoring an extension to fresh multi-year lows in the 0.7300/30 region."
Karen Jones, chief analyst at Commerzbank explained that their bearish outlook also while they look for losses to the base of the 2 year channel at 0.7193 longer term. "Near term the market remains offered below the 0.7675 short term resistance line."