6 Jun 2014
AUD/USD upside limited at 0.9260
FXStreet (Edinburgh) - The Aussie dollar keeps pushing higher on Friday, lifting the AUD/USD to the mid-0.9300s although the rally seems to have run out of legs near 0.9360.
AUD/USD in 2-week highs
The area surrounding the 0.9200 handle gave strong support to the recent AUD pullbacks, although renewed hopes of a better performance from the Chinese economy and a positive note from the RBA backed the current rally beyond 0.9300 the figure. Annette Beacher, Strategist at TD Securities, assessed, “In a broader context, the AUD price action is consistent with the equity market performance of commodity hungry economies. The equity markets of countries such as India, Brazil, Canada, Australia and China have diverged from the move in commodities. Not only has the AUD performed in line with its own equity index, the performance is in line with the returns seen in Brazilian and Canadian stock markets. The AUD performance once again does not seem out of character”.
AUD/USD levels to consider
The pair is now up 0.07% at 0.9347 with the next resistance at 0.9377 (high May 19) ahead of 0.9398 (38.2% of sell-off from 1.0) and then 0.9410 (high May 14). On the downside, a breach below 0.9308 (50-d MA) would expose 0.9257 (low Jun.5) and finally 0.9253 (low Jun.4).
AUD/USD in 2-week highs
The area surrounding the 0.9200 handle gave strong support to the recent AUD pullbacks, although renewed hopes of a better performance from the Chinese economy and a positive note from the RBA backed the current rally beyond 0.9300 the figure. Annette Beacher, Strategist at TD Securities, assessed, “In a broader context, the AUD price action is consistent with the equity market performance of commodity hungry economies. The equity markets of countries such as India, Brazil, Canada, Australia and China have diverged from the move in commodities. Not only has the AUD performed in line with its own equity index, the performance is in line with the returns seen in Brazilian and Canadian stock markets. The AUD performance once again does not seem out of character”.
AUD/USD levels to consider
The pair is now up 0.07% at 0.9347 with the next resistance at 0.9377 (high May 19) ahead of 0.9398 (38.2% of sell-off from 1.0) and then 0.9410 (high May 14). On the downside, a breach below 0.9308 (50-d MA) would expose 0.9257 (low Jun.5) and finally 0.9253 (low Jun.4).