6 Sep 2013
AUD/USD capped by 0.9140
FXstreet.com (Edinburgh) - It seems the Aussie dollar halted its weekly upside in levels just shy of the 0.9200 handle, pushing the AUD/USD back to the mid 0.9100s, where 0.9140 is now capping intraday bull attempts so far.
AUD/USD hit by risk aversion
The greenback has resumed its bid tone on Wednesday after a decent string of US data, pushing US rates and the US to higher ground, and thus punishing the risk-associated assets. Greg Gibbs, FX Trading Strategist at RBS, assessed, ”The AUD recovery reflects the RBA reluctance to further cut rates with a housing market recovery gaining momentum, the recent improvement in Chinese activity and firmer commodity markets since June, and a bit of stability in EM currencies. We doubt there will be much improvement in business confidence and this will limit the potential for a further significant recovery in AUD”. However, the expert remains skeptic regarding EM and Chinese recovery, pointing to 0.92/0.93 to cap the upside.
AUD/USD key levels
The pair is now advancing 0.25% at 0.9145 with the next hurdle at 0.9188 (highs Sep.4/5) followed by 0.9234 (high Aug.19) and then 0.9257 (23.6% of 1.0583-0.8848). On the flip side, a breakdown of 0.9114 (MA55d) would expose 0.9063 (MA21d) and finally 0.9038 (low Sep.4).
AUD/USD hit by risk aversion
The greenback has resumed its bid tone on Wednesday after a decent string of US data, pushing US rates and the US to higher ground, and thus punishing the risk-associated assets. Greg Gibbs, FX Trading Strategist at RBS, assessed, ”The AUD recovery reflects the RBA reluctance to further cut rates with a housing market recovery gaining momentum, the recent improvement in Chinese activity and firmer commodity markets since June, and a bit of stability in EM currencies. We doubt there will be much improvement in business confidence and this will limit the potential for a further significant recovery in AUD”. However, the expert remains skeptic regarding EM and Chinese recovery, pointing to 0.92/0.93 to cap the upside.
AUD/USD key levels
The pair is now advancing 0.25% at 0.9145 with the next hurdle at 0.9188 (highs Sep.4/5) followed by 0.9234 (high Aug.19) and then 0.9257 (23.6% of 1.0583-0.8848). On the flip side, a breakdown of 0.9114 (MA55d) would expose 0.9063 (MA21d) and finally 0.9038 (low Sep.4).