24 Apr 2014
AUD/USD drops to 2-week lows
FXStreet (Edinburgh) - The weakness around the AUD remains intact on Thursday, with the AUD/USD now dipping to the 0.9260 area, or 2-week lows.
AUD/USD still weak post-CPI data
The Aussie dollar is still under the effects of the recent more benign CPI figures during the first quarter in Oz (2.9% YoY), correcting lower from weekly peaks around 0.9370. Markets remain slightly tilted to the risk-off trade, which is not helping the AUD either. In the very near term, Durable Goods Orders and the weekly report on the labour market, both due later in the US docket, seem to be the immediate catalysts for any movement in spot. In the opinion of Quek Ser Leang, Market Strategist at UOB Group, “Despite the short-term consolidation after the sharp drop yesterday, the immediate outlook still appears to be weak but only a clear break below the strong support at 0.9255 will shift the outlook to bearish. A move back above 0.9350 would indicate that the short-term downside risk has stabilized”.
AUD/USD levels to watch
At the moment the pair is losing 0.27% at 0.9266 with the next support at 0.9254 (low Apr.7) ahead of 0.9225 (low Apr.4) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9425 (high Apr.15) would expose 0.9426 (high Apr.14) and then 0.9461 (high Apr.10).
AUD/USD still weak post-CPI data
The Aussie dollar is still under the effects of the recent more benign CPI figures during the first quarter in Oz (2.9% YoY), correcting lower from weekly peaks around 0.9370. Markets remain slightly tilted to the risk-off trade, which is not helping the AUD either. In the very near term, Durable Goods Orders and the weekly report on the labour market, both due later in the US docket, seem to be the immediate catalysts for any movement in spot. In the opinion of Quek Ser Leang, Market Strategist at UOB Group, “Despite the short-term consolidation after the sharp drop yesterday, the immediate outlook still appears to be weak but only a clear break below the strong support at 0.9255 will shift the outlook to bearish. A move back above 0.9350 would indicate that the short-term downside risk has stabilized”.
AUD/USD levels to watch
At the moment the pair is losing 0.27% at 0.9266 with the next support at 0.9254 (low Apr.7) ahead of 0.9225 (low Apr.4) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9425 (high Apr.15) would expose 0.9426 (high Apr.14) and then 0.9461 (high Apr.10).