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12 Feb 2014
AUD/USD creating a correction?
FXStreet (Guatemala) - The AUD/USD has been firmly advancing following strong Australian house price data yesterday and while taking advantage of a weaker dollar over the course of the NY shift with Yellen rattling investors on a mixed bag of statements in her first public testimony as new Federal Reserve chair.
AUD/USD has taken on the 0.90 handle after staging an impressive follow through without any significant blockades on the 0.88 decimal. 0.90 is a psychological level that might have us wondering if the pair has now bottomed on expectations that the RBA will indeed be lending some support to the AUD/USD on policy going forward. In Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. The expectation of steady policy should help lend some support to AUD/USD going forward. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”.
AUD/USD Levels
The 20 DMA is 0.8833, the 50 DMA is 0.8910 and the 200 DMA is 0.9245. RSI (14) reads 62.69. Supports are ascending from 0.8873, 0.8896, 0.8907 and 0.8938. Spot is 0.9031 while resistances are 0.9087, 0.9125 and 0.9169.
AUD/USD has taken on the 0.90 handle after staging an impressive follow through without any significant blockades on the 0.88 decimal. 0.90 is a psychological level that might have us wondering if the pair has now bottomed on expectations that the RBA will indeed be lending some support to the AUD/USD on policy going forward. In Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. The expectation of steady policy should help lend some support to AUD/USD going forward. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”.
AUD/USD Levels
The 20 DMA is 0.8833, the 50 DMA is 0.8910 and the 200 DMA is 0.9245. RSI (14) reads 62.69. Supports are ascending from 0.8873, 0.8896, 0.8907 and 0.8938. Spot is 0.9031 while resistances are 0.9087, 0.9125 and 0.9169.