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26 Feb 2014
AUD/USD tempted for the key 0.90 handle
FXStreet (Guatemala) - AUD/USD is drifting from 0.9040 resistance after a period of consolidation between 0.9020 and 0.9040. A breach of 0.9000 could put the pair into negative territory.
However, a breach there may only be temporary, as explained by Ivan Delgado who is the Head of Asian Editor's. "On the downside, some stops are accumulating below 0.90/0.8990, which suggests any break lower may cause an initial quick decline, although the sizeable bullish outside day from Monday (more representative of market intentions) communicates interest to buy on dips should be solid as the next projected price trajectory following several downside failures appears to be a retest of 0.9080". As for the day ahead, Sean Callow, analyst at Westpac Banking Corporation ABN explained, “The first of the inputs to Australia’s Q4 GDP report (due a week from now) is construction work done (11:30am Syd/8:30am Sing/HK). Westpac looks for a 1% q/q rise, after 2.7% in Q3, though the y/y rate should only be 2%. The strongest component should be new dwelling construction (4%), with small gains expected in private non-residential construction and public engineering but -2% on private engineering after a 7% jump in Q3. The median forecast is 0.2% q/q. AUD tends to respond only modestly to this release, if at all, but it is an important component of growth. RBA Governor Stevens is listed to attend an event in Melbourne but it is closed to media. In Asia, we will see Singapore industrial production and Hong Kong Q4 GDP”.
AUD/USD Levels
The 20 DMA is 0.8933, the 50 DMA is 0.8904, the 200 DMA is 0.9198. RSI (14) reads 43.17. Supports are 0.8907, 0.8927, 0.8974, 0.8998. Spot is 0.9008. Resistances are 0.9020, 0.9087, 0.9169, 0.9204 and 0.9260.
However, a breach there may only be temporary, as explained by Ivan Delgado who is the Head of Asian Editor's. "On the downside, some stops are accumulating below 0.90/0.8990, which suggests any break lower may cause an initial quick decline, although the sizeable bullish outside day from Monday (more representative of market intentions) communicates interest to buy on dips should be solid as the next projected price trajectory following several downside failures appears to be a retest of 0.9080". As for the day ahead, Sean Callow, analyst at Westpac Banking Corporation ABN explained, “The first of the inputs to Australia’s Q4 GDP report (due a week from now) is construction work done (11:30am Syd/8:30am Sing/HK). Westpac looks for a 1% q/q rise, after 2.7% in Q3, though the y/y rate should only be 2%. The strongest component should be new dwelling construction (4%), with small gains expected in private non-residential construction and public engineering but -2% on private engineering after a 7% jump in Q3. The median forecast is 0.2% q/q. AUD tends to respond only modestly to this release, if at all, but it is an important component of growth. RBA Governor Stevens is listed to attend an event in Melbourne but it is closed to media. In Asia, we will see Singapore industrial production and Hong Kong Q4 GDP”.
AUD/USD Levels
The 20 DMA is 0.8933, the 50 DMA is 0.8904, the 200 DMA is 0.9198. RSI (14) reads 43.17. Supports are 0.8907, 0.8927, 0.8974, 0.8998. Spot is 0.9008. Resistances are 0.9020, 0.9087, 0.9169, 0.9204 and 0.9260.