8 Jul 2014
AUD/USD dipping below 0.94 handle and pressure mounts
FXStreet (Guatemala) - AUD/USD is trading at 0.9396, up 0.26% on the day, having posted a daily high at 0.9416 and low at 0.9366.
The AUD was encouraged overnight by a rise in Jun business confidence and has since managed the 0.94 handle. Analysts at Rabobank explained that the results of the data will take the edge of fears that low interest rates are failing to fuel anything other than house price inflation. “That said the employment component of this survey is weak and this implies that fears regarding slack investment growth following the end of the mining investment boom will remain. While the recent softening in fears about the pace of growth in the Chinese economy is supportive for the AUD, we expect these concerns to resume in the months ahead and anticipate a weaker outlook for the AUD/USD medium-term. We see risk that AUD/USD could start pushing down towards the 0.80 level by the end of this year, dependent on the news from China”.
AUD/USD Levels
Current price is 0.9397, with resistance ahead at 0.9401 (Weekly Classic PP), 0.9401 (Daily Classic R2), 0.9405 (Hourly 200 SMA), 0.9416 (Daily High) and 0.9425 (Daily Classic R3). Next support to the downside can be found at 0.9390 (Hourly 20 EMA), 0.9388 (Daily 20 SMA), 0.9387 (Daily Classic R1), 0.9379 (Hourly 100 SMA) and 0.9378 (Yesterday's High).
The AUD was encouraged overnight by a rise in Jun business confidence and has since managed the 0.94 handle. Analysts at Rabobank explained that the results of the data will take the edge of fears that low interest rates are failing to fuel anything other than house price inflation. “That said the employment component of this survey is weak and this implies that fears regarding slack investment growth following the end of the mining investment boom will remain. While the recent softening in fears about the pace of growth in the Chinese economy is supportive for the AUD, we expect these concerns to resume in the months ahead and anticipate a weaker outlook for the AUD/USD medium-term. We see risk that AUD/USD could start pushing down towards the 0.80 level by the end of this year, dependent on the news from China”.
AUD/USD Levels
Current price is 0.9397, with resistance ahead at 0.9401 (Weekly Classic PP), 0.9401 (Daily Classic R2), 0.9405 (Hourly 200 SMA), 0.9416 (Daily High) and 0.9425 (Daily Classic R3). Next support to the downside can be found at 0.9390 (Hourly 20 EMA), 0.9388 (Daily 20 SMA), 0.9387 (Daily Classic R1), 0.9379 (Hourly 100 SMA) and 0.9378 (Yesterday's High).