10 Oct 2013
AUD/USD selling trips 0.94 stops, trendline off 0.89 gone
FXstreet.com (Barcelona) - After a short-lived spike towards 0.9470, the same 0.9450+ rejection pattern from recent days developed in the AUD/USD, with sellers ruling the rooster to take the exchange rate through stop loss orders below the 0.9410/0.94 area, posting a new 3-day low at 0.9394 on the back of downbeat Aussie jobs.
While there was some initial hesitation as to what to make out of the Australian employment report, with the total job change 6,000 short - came at 9,000 - of the 15,000 expected, and jobless rate surprisingly low at 5.6% - mainly due to lowest participation since 2006 as job seekers get discouraged -, the market finally gave its verdict, that being AUD didn't deserve to appreciate as some market participants anticipate the announcement will either make the RBA turn more dovish again.
The downside breakout in the Australian Dollar is significant, as it violates a 6-week held ascending trendline coming all the way from 0.89 on late August, reinforcing the notion that the market may now retain the ongoing bearish tone for the rest of the week. Overall, a 0.9290/0.93 - 0.9475/0.95 range extension, with risks skewed to the downside, should develop in coming days.
On the downside, 0.9390 (Sept 16 high) is the next hurdle to overcome. If below the level, sellers will find a reason to target 0.9365 down to 0.9340 (intraday levels) ahead of key support at 0.9290, which still allows for a constructive daily chart.
While there was some initial hesitation as to what to make out of the Australian employment report, with the total job change 6,000 short - came at 9,000 - of the 15,000 expected, and jobless rate surprisingly low at 5.6% - mainly due to lowest participation since 2006 as job seekers get discouraged -, the market finally gave its verdict, that being AUD didn't deserve to appreciate as some market participants anticipate the announcement will either make the RBA turn more dovish again.
The downside breakout in the Australian Dollar is significant, as it violates a 6-week held ascending trendline coming all the way from 0.89 on late August, reinforcing the notion that the market may now retain the ongoing bearish tone for the rest of the week. Overall, a 0.9290/0.93 - 0.9475/0.95 range extension, with risks skewed to the downside, should develop in coming days.
On the downside, 0.9390 (Sept 16 high) is the next hurdle to overcome. If below the level, sellers will find a reason to target 0.9365 down to 0.9340 (intraday levels) ahead of key support at 0.9290, which still allows for a constructive daily chart.