9 Dec 2013
AUD/USD following through after posting bullish reversal candle at support Friday
FXstreet.com (Barcelona) - The AUD/USD was in a miserable short-term downtrend until Friday when a conspicuous bullish reversal candle was formed by the day’s trading action – despite the fact that US data seems to be improving.
AUD/USD traders reacting now to Chinese data and waiting for US Fed Heads later
Chinese Trade Balance data showed a surprising increase in the surplus for the month of November. Chinese exports increased far more than expected and Chinese imports actually came in light of expectations. Intuition says these data tell us the Chinese government and/or Chinese consumers are tightening their belt while the rest of the world seems to be ramping up their use of Chinese products.
The initial reaction to the data has been for the somewhat China-reliant Aussie Dollar to rally. Time will tell if that reaction holds.
Later Monday, AUD/USD traders will get to react to Chinese inflation data during Asian hours as well as a series of US Fed Heads giving speeches during the US session.
Technical outlook for AUD/USD
Technicians note that the AUD/USD managed to hold support at 0.9120 Friday and posted a very bullish reversal candle on the chart in the process. The next possible projected support comes in at the Fibonacci-generated 0.8940 and is backed up by the August low of 0.8847. Resistance for the cross starts at last Monday’s high of 0.9167 and is backed up by the 11/12 close at 0.9301.
AUD/USD traders reacting now to Chinese data and waiting for US Fed Heads later
Chinese Trade Balance data showed a surprising increase in the surplus for the month of November. Chinese exports increased far more than expected and Chinese imports actually came in light of expectations. Intuition says these data tell us the Chinese government and/or Chinese consumers are tightening their belt while the rest of the world seems to be ramping up their use of Chinese products.
The initial reaction to the data has been for the somewhat China-reliant Aussie Dollar to rally. Time will tell if that reaction holds.
Later Monday, AUD/USD traders will get to react to Chinese inflation data during Asian hours as well as a series of US Fed Heads giving speeches during the US session.
Technical outlook for AUD/USD
Technicians note that the AUD/USD managed to hold support at 0.9120 Friday and posted a very bullish reversal candle on the chart in the process. The next possible projected support comes in at the Fibonacci-generated 0.8940 and is backed up by the August low of 0.8847. Resistance for the cross starts at last Monday’s high of 0.9167 and is backed up by the 11/12 close at 0.9301.