9 Jan 2014
AUD/USD is pressed down as 0.8900 gave way
FXstreet.com (Moscow) - AUD/USD is user selling pressure as the important support level of 0.8900 gave way early in the morning today; the pair is currently trading at 0.8879.
AUD/USD bears have the upper hand
China's annual consumer inflation continued to slow in December (the consumer price index lowered to 2.5% against forecasted 2.7% and 3.0% in November). This means that the economies is in the soft patch and the People’s Bank of China is in no hurry to raise rates and may indulge in further economy stimulus to maintain the growth. Bad news for China dependent countries, such as Australia. The Australian retail sales data came out better than expected (+0.7% against forecasted +0.4%) but AUD/USD continued to weaken during Asian hours as the traders are still reacting to strong FOMC minutes published yesterday late in the evening. Technically speaking, AUDUSD broke below strong support at 0.8900, which may accelerate the downside in the short-term. The support zone of 0.8855-40 will probably limit the downside today, but the pair needs to go back above 0.8900 to negate the bearish sentiment.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8921, with support below at 0.8889, 0.8863 and 0.8831, with resistance above at 0.8947, 0.8979, and 0.9005 Hourly Moving Averages are mixed, with the 200SMA at 0.8920 and the daily 20EMA at 0.8956. Hourly RSI is neutral at 39.79.
AUD/USD bears have the upper hand
China's annual consumer inflation continued to slow in December (the consumer price index lowered to 2.5% against forecasted 2.7% and 3.0% in November). This means that the economies is in the soft patch and the People’s Bank of China is in no hurry to raise rates and may indulge in further economy stimulus to maintain the growth. Bad news for China dependent countries, such as Australia. The Australian retail sales data came out better than expected (+0.7% against forecasted +0.4%) but AUD/USD continued to weaken during Asian hours as the traders are still reacting to strong FOMC minutes published yesterday late in the evening. Technically speaking, AUDUSD broke below strong support at 0.8900, which may accelerate the downside in the short-term. The support zone of 0.8855-40 will probably limit the downside today, but the pair needs to go back above 0.8900 to negate the bearish sentiment.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8921, with support below at 0.8889, 0.8863 and 0.8831, with resistance above at 0.8947, 0.8979, and 0.9005 Hourly Moving Averages are mixed, with the 200SMA at 0.8920 and the daily 20EMA at 0.8956. Hourly RSI is neutral at 39.79.