7 Aug 2015
AUD/USD: staging a recovery through key resistance
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7407 with a high of 0.7410 and a low of 0.7333 at time of writing.
AUD/USD remains robust and has staged a come back vs the greenback post the non farm Payroll's report. The backdrop came with a positive RBA statement overnight with an upgrade of inflation expectations to 2.5% over the next two years while the unemployment forecast was also lowered. This with a further backdrop of a positive jobs report this week is supporting demand for the commodity currency, despite a long bearish phase and a change in language in respect to the AUD from the recent RBA minutes. However, lass night's statement also said that the Aussie will decline further once the Fed raises rates.
Today's Nonfarm Payrolls data backs sentiment for a hike from the Fed as early as September. "The headlines are that payrolls rose 215k with 14k upward revisions to the last two months so on balance is pretty close to the 225k consensus, " explained James Knightley, analyst at ING Bank. "It is strong enough to keep the September rate hike our central case."
AUD/USD technically comes bearish
AUD/USD has been challenging the down channel at 0.7390 and has scored on to the 0.74 handle which is significant. However, only breaks and a good close or two above the 23.6% Fibonacci retracement at 0.7454 might trigger a recovery towards the 0.7557 55-day moving average. Otherwise, the 0.7250 area hovers above the 0.7235 July low guarding the base of the two year channel at 0.7188, the long term Fibonacci retracement at 0.7185 and the 14 year support line at 0.7144.
AUD/USD remains robust and has staged a come back vs the greenback post the non farm Payroll's report. The backdrop came with a positive RBA statement overnight with an upgrade of inflation expectations to 2.5% over the next two years while the unemployment forecast was also lowered. This with a further backdrop of a positive jobs report this week is supporting demand for the commodity currency, despite a long bearish phase and a change in language in respect to the AUD from the recent RBA minutes. However, lass night's statement also said that the Aussie will decline further once the Fed raises rates.
Today's Nonfarm Payrolls data backs sentiment for a hike from the Fed as early as September. "The headlines are that payrolls rose 215k with 14k upward revisions to the last two months so on balance is pretty close to the 225k consensus, " explained James Knightley, analyst at ING Bank. "It is strong enough to keep the September rate hike our central case."
AUD/USD technically comes bearish
AUD/USD has been challenging the down channel at 0.7390 and has scored on to the 0.74 handle which is significant. However, only breaks and a good close or two above the 23.6% Fibonacci retracement at 0.7454 might trigger a recovery towards the 0.7557 55-day moving average. Otherwise, the 0.7250 area hovers above the 0.7235 July low guarding the base of the two year channel at 0.7188, the long term Fibonacci retracement at 0.7185 and the 14 year support line at 0.7144.