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9 Sep 2013
AUD/USD is heading upwards on China data and after weekend elections
FXstreet.com (Athens): The AUD/USD opened higher today, probably on Saturday’s elections and solid Chinese data released on the weekend.
AUD/USD on the upper level after Tony Abbot comes in power
While it was widely expected, it is more than probable, that the “Aussie” gained solid ground after the Liberal-National coalition’s win in the lower house. Elaborating on, the previous government was punished by the majority of Australian voters for six years of turbulent rule and for failing to maximize the benefits of a now fading mining boom. Therefore, the “Aussie” after gaining solid ground on Friday against the greenback on dismal NFP data, also opened higher on Asian’s trading day on Sunday, touching a high as of 0.9217 (high not seen since the 19th of August). Furthermore, it is likely that the ‘Aussie’ also boosted by China’s trade surplus that rose significantly and mostly on the back of a heavy acceleration in exports. However, Australian today’s data showing that job advertisements have declined further, dropping 2.0 per cent in August after falling 1.1 per cent in July (after 6 consecutive months declines). Last but not least, Shanghai Composite (up 2.8%) and MSCI AXJ (up1.0%) seem to be helping AUD/USD moving above 0.9200.
TECHNICAL PERSPECTIVE AND OUTLOOK ON AUD/USD
Karen Jones, Head of Technical Analysis at Commerzbank notes that “Longer term we will remain negative while below key resistance at 0.9388/0.9404 (2011 low and 2009 high), with our downside target being seen at 0.8550, the 50% retracement of the move up from 2008. Our longer term downside target measured from the top is 0.7700.” What’s more, it is of great importance to point-out that while the pair managed to touch a high as of 0.9217, and still trading above 0.9200, left intact the major resistance level at 0.9230. According to Marc Chandler, Global Head Strategy from BBH MarketView “The Australian dollar appears to have carved out a double bottom and is testing the neckline near $0.9200. A convincing break would project a move toward $0.9500, although the $0.9300 area may prove difficult to breach initially. Initial support is seen around $0.9100.” The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at S3: 0.9149 S2: 0.9126 S3: 0.9103, and resistance at R1: 0.9252 R2:0.9275 R3: 0.9300, respectively.
AUD/USD on the upper level after Tony Abbot comes in power
While it was widely expected, it is more than probable, that the “Aussie” gained solid ground after the Liberal-National coalition’s win in the lower house. Elaborating on, the previous government was punished by the majority of Australian voters for six years of turbulent rule and for failing to maximize the benefits of a now fading mining boom. Therefore, the “Aussie” after gaining solid ground on Friday against the greenback on dismal NFP data, also opened higher on Asian’s trading day on Sunday, touching a high as of 0.9217 (high not seen since the 19th of August). Furthermore, it is likely that the ‘Aussie’ also boosted by China’s trade surplus that rose significantly and mostly on the back of a heavy acceleration in exports. However, Australian today’s data showing that job advertisements have declined further, dropping 2.0 per cent in August after falling 1.1 per cent in July (after 6 consecutive months declines). Last but not least, Shanghai Composite (up 2.8%) and MSCI AXJ (up1.0%) seem to be helping AUD/USD moving above 0.9200.
TECHNICAL PERSPECTIVE AND OUTLOOK ON AUD/USD
Karen Jones, Head of Technical Analysis at Commerzbank notes that “Longer term we will remain negative while below key resistance at 0.9388/0.9404 (2011 low and 2009 high), with our downside target being seen at 0.8550, the 50% retracement of the move up from 2008. Our longer term downside target measured from the top is 0.7700.” What’s more, it is of great importance to point-out that while the pair managed to touch a high as of 0.9217, and still trading above 0.9200, left intact the major resistance level at 0.9230. According to Marc Chandler, Global Head Strategy from BBH MarketView “The Australian dollar appears to have carved out a double bottom and is testing the neckline near $0.9200. A convincing break would project a move toward $0.9500, although the $0.9300 area may prove difficult to breach initially. Initial support is seen around $0.9100.” The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at S3: 0.9149 S2: 0.9126 S3: 0.9103, and resistance at R1: 0.9252 R2:0.9275 R3: 0.9300, respectively.