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23 Apr 2014
AUD/USD in 2-week lows
FXStreet (Edinburgh) - The Aussie dollar is sharply lower on Wednesday, dragging the AUD/USD to the vicinity of levels last seen in early April around 0.9270.
AUD/USD weaker on domestic data, China
Softer then expected inflation figures during the first quarter in Oz poured cold water over expectations of a rate hike by the RBA at some point towards the end of 2014, hurting the AUD and dragging spot from beyond 0.9370. it is worth recalling that consumer prices advanced 2.9% YoY in Q1 and 0.6% QoQ, vs. forecasts at 3.2% and 0.8%, respectively. The figures now remain within the 2-3% RBA target, removing some pressure from the central bank. Adding to the downside, Chinese manufacturing PMI gauged by HSBC also came in below estimates at 48.3 for the present month. “The Aussie is probably near the top of multi-month ranges, with 0.9450/60 now more likely than a 0.95 handle on the topside. But while some further soft China data could see a drift to 0.9250/75 near term, we don’t see a sharp correction, given decent underlying strength in Australia’s economy keeping the RBA on hold and limiting the danger of AUD jawboning”, suggested analysts at Westpac Global Strategy Group.
AUD/USD key levels
The pair is now losing 0.90% at 0.9280 with the next support at 0.9197 (daily cloud top) ahead of 0.9163 (200-d MA) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9300 (psychological level) would expose 0.9310 (high Apr.1) and then 0.9387 (high Apr.8).
AUD/USD weaker on domestic data, China
Softer then expected inflation figures during the first quarter in Oz poured cold water over expectations of a rate hike by the RBA at some point towards the end of 2014, hurting the AUD and dragging spot from beyond 0.9370. it is worth recalling that consumer prices advanced 2.9% YoY in Q1 and 0.6% QoQ, vs. forecasts at 3.2% and 0.8%, respectively. The figures now remain within the 2-3% RBA target, removing some pressure from the central bank. Adding to the downside, Chinese manufacturing PMI gauged by HSBC also came in below estimates at 48.3 for the present month. “The Aussie is probably near the top of multi-month ranges, with 0.9450/60 now more likely than a 0.95 handle on the topside. But while some further soft China data could see a drift to 0.9250/75 near term, we don’t see a sharp correction, given decent underlying strength in Australia’s economy keeping the RBA on hold and limiting the danger of AUD jawboning”, suggested analysts at Westpac Global Strategy Group.
AUD/USD key levels
The pair is now losing 0.90% at 0.9280 with the next support at 0.9197 (daily cloud top) ahead of 0.9163 (200-d MA) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9300 (psychological level) would expose 0.9310 (high Apr.1) and then 0.9387 (high Apr.8).