Aug
30
2010

 

AUD/USD Buoyed By Positive Data

The Aussie is trying to weather investor uncertainty and the currency pair received some fundamental support today as building approvals and retail sales topped analyst expectations.  Additionally, the current account deficit came in lighter than anticipated, signaling a pickup in export demand.  Hence, it seems the RBA has backing to stay neutral and even slightly cautious despite a slowdown in the U.S.  That being said, the RBA will get a full picture tomorrow with Australia’s GDP on tap.  Investors are expecting growth of 0.9%.  Should GDP top 1% then the Aussie would receive additional support even if the risk trade buckles.  In addition to Australia’s GDP investors will also be paying close attention to China’s manufacturing PMI figure.  Since Australia’s economic performance is highly reliant on Chinese demand for natural resources, if the manufacturing PMI number contracts then the Aussie could be subject to selling pressure.  Meanwhile, investors will turn their attention towards the U.S. with CB consumer confidence and the Fed’s meeting minutes on tap.  
 
Technically speaking, the Aussie faces technical barriers in the form of intraday and 8/30 highs.  Meanwhile, the highly psychological .90 level could continue to have a noticeable influence over near-term movements in the Aussie.  As for the downside, the Aussie has multiple medium-term uptrend lines working in its favor along with intraday and 8/26 lows.  
Price: .8940
Resistances: .8946, .8969, .8999, .9017, .9030, .9046, .9059
Supports: .8932, .8917, .8899, .8885, .8867, .8851, .8829
Psychological:  .90, August highs and lows
 
 
 

 
Posted by: Matthew Myers

 

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