13 Dec 2013
AUD/USD sells off Thursday and breaks ST technical support
FXstreet.com (Barcelona) - The AUD/USD sliced through “correction support” Thursday and opened the door to even more short-term downside potential.
AUD/USD traders to monitor light data flow and DC chatter Friday
Some would say the action in the AUD/USD is shocking considering how poorly the greenback has been trading versus other global currencies like the euro and the Pound and especially given the better Aussie jobs data this week. For a breakdown in AUD/USD to occur when Aussie data is better and US data is mixed / mildly better tells us that traders are looking past the data and instead focusing on the likelihood of US Fed tapering in December / January. Apparently, at least for Thursday, the global trading community is putting the likelihood of tapering this month or next at very high levels.
Traders will be watching the continuing dialogue coming out of Washington, D.C., as well as the US Producer Price Index at 13:30 GMT.
Technical outlook for AUD/USD
Technicians note that the AUD/USD broke below “correction support” at 0.8947 and now appears destined for a test of the recent lows at 0.8847. Resistance for the cross starts at the early December pivot at 0.9000 and is followed by the 12/10 high at 0.9166.
AUD/USD traders to monitor light data flow and DC chatter Friday
Some would say the action in the AUD/USD is shocking considering how poorly the greenback has been trading versus other global currencies like the euro and the Pound and especially given the better Aussie jobs data this week. For a breakdown in AUD/USD to occur when Aussie data is better and US data is mixed / mildly better tells us that traders are looking past the data and instead focusing on the likelihood of US Fed tapering in December / January. Apparently, at least for Thursday, the global trading community is putting the likelihood of tapering this month or next at very high levels.
Traders will be watching the continuing dialogue coming out of Washington, D.C., as well as the US Producer Price Index at 13:30 GMT.
Technical outlook for AUD/USD
Technicians note that the AUD/USD broke below “correction support” at 0.8947 and now appears destined for a test of the recent lows at 0.8847. Resistance for the cross starts at the early December pivot at 0.9000 and is followed by the 12/10 high at 0.9166.