Sep
2
2010

 

AUD/USD Blows Past .90

The Aussie logged huge gains yesterday and blew right past its highly psychological .90 level after Australia’s GDP topped analyst forecasts by 3 basis points and the currency pair benefitted from a rally in the risk trade as a whole.  Yesterday’s positive GDP release came after encouraging housing and consumption data, indicating Australia’s economy is on solid footing despite recent headwinds from the U.S.  Additionally, China’s manufacturing PMI improved and it appears the slowdown in China may just be a step back and not a double dip.  The tide of good fundamentals has reaffirmed confidence in the Aussie and is leading analysts to believe that the RBA will raise its benchmark rate once again before year’s end.  Meanwhile, the Aussie is trading well above long-term uptrend lines while the currency pair eyes August highs.  However, present strength in the Aussie could be capped by upcoming U.S. data.  The U.S. will print pending home sales data today followed by headline unemployment figures tomorrow.  Should these data points disappoint then the risk trade could head lower and cap near-term gains in the Aussie, leaving the currency pair to consolidate around .90.  On the other hand, if the U.S. happens to receive some positive employment data then the Aussie would be an obvious beneficiary due to Australia’s comparative economic outperformance.  Regardless, the Forex markets appear to be headed towards a volatile close to a wild week.  
Technically speaking, the Aussie faces technical barriers in the form of intraday and 8/9 highs.  .  As for the downside, the Aussie has multiple medium-term uptrend lines working in its favor along with intraday lows.  Meanwhile, the highly psychological .90 level becomes a technical cushion once again.  
Price: .9091
Resistances: .9096, .9114, .9127, .9147, .9161, .9181
Supports: .9076, .9059, .9046, .9030, .9017, .8999, .8969
Psychological:  .90, August Highs
 
 
 

 
Posted by: Matthew Myers

 

Disclaimer: FastBrokers' market commentary is provided for information purposes only and under no circumstances should be regarded neither as investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.

 

 
support