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17 Dec 2013
AUD/USD ignore headlines, holds range into third day
FXstreet.com (Barcelona) - Since last week`s commentary from the RBA’s Stevens, AUD/USD has held a range below 0.9000, between 0.8910-0.8970.
AUD/USD unmoved by RBA minutes
Overnight saw a range of AUD headlines, but the price reaction was muted, indicating that they had already been priced in. Datawise, the CB Leading Indicator for October came in at 0.5% from 0.3% previous, and there was also an improvement in New Motor Vehicle Sales, both MoM and YoY. However, Moodys issued a statement which read “AUD GDP Forecast, deficits are credit negative” hinting at the possibility of a downgrade if the situation does not improve. Elsewhere, the Australian Treasurer Hockey spoke, commenting that the deterioration in the budget was not just a short term problem but the recent fall in AU$ and low rates should ease pressure. Finally, the RBA minutes were as expected, following RBA Steven’s previous comments, that further easing was still a possibility.
What are today’s key AUD/USD levels and patterns?
The central pivot point today falls at 0.8946, with support below at 0.8920 (S1), 0.8893 (S2) and 0.8867 (S3), and resistance above at 0.8973 (R1), 0.8999 (R2) and 0.9026 (R3). The range between 0.8933-8899 could provide support with several key technical levels clustered. Matt Bacon-Hall of FXBeat notes that there is upcoming resistance at 0.8960-70 with prop offers, and 0.8970 with buy stops and option accounts. Below he notes support at 0.8920-00 through a variety of bids and 0.8890 where sell stops commence. Also, a daily Hammer Candlestick formation can also be observed.
AUD/USD unmoved by RBA minutes
Overnight saw a range of AUD headlines, but the price reaction was muted, indicating that they had already been priced in. Datawise, the CB Leading Indicator for October came in at 0.5% from 0.3% previous, and there was also an improvement in New Motor Vehicle Sales, both MoM and YoY. However, Moodys issued a statement which read “AUD GDP Forecast, deficits are credit negative” hinting at the possibility of a downgrade if the situation does not improve. Elsewhere, the Australian Treasurer Hockey spoke, commenting that the deterioration in the budget was not just a short term problem but the recent fall in AU$ and low rates should ease pressure. Finally, the RBA minutes were as expected, following RBA Steven’s previous comments, that further easing was still a possibility.
What are today’s key AUD/USD levels and patterns?
The central pivot point today falls at 0.8946, with support below at 0.8920 (S1), 0.8893 (S2) and 0.8867 (S3), and resistance above at 0.8973 (R1), 0.8999 (R2) and 0.9026 (R3). The range between 0.8933-8899 could provide support with several key technical levels clustered. Matt Bacon-Hall of FXBeat notes that there is upcoming resistance at 0.8960-70 with prop offers, and 0.8970 with buy stops and option accounts. Below he notes support at 0.8920-00 through a variety of bids and 0.8890 where sell stops commence. Also, a daily Hammer Candlestick formation can also be observed.