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10 Nov 2014
AUD/USD capped at 0.8680
FXStreet (Edinburgh) - The intraday upside of the Aussie dollar seems to have run out of legs in the 0.8680 area so far, with AUD/USD now coming back to the 0.8660/65 band.
AUD/USD improving with risk
Spot is following the better mood from the risk appetite at the beginning of the week, backed by positive data from the Chinese external sector over the weekend despite the steady inflation figures during October. Data wise in Oz, Home Loans dropped less than estimated during September, contracting 0.7% vs. the previous 0.9% pullback. The pair remains on recovery-mode after hitting fresh 2014 lows last week, although analysts warn of potential retracement ahead. Researchers at BBH argued “The RSI and MACD trended higher in October, and the pullback in prices in early November have not been validated. There is near-term scope for the Aussie to test the $0.8660-80 area, which would also offer a new selling opportunity”.
AUD/USD key levels
At the moment the pair is up 0.35% at 0.8663 with the next resistance at 0.8700 (psychological level) ahead of 0.8738 (high Nov.5) and then 0.8761 (high Nov.4). On the flip side, a breakdown of 0.8540 (2014 low Nov.6) would expose 0.8500 (psychological level).
AUD/USD improving with risk
Spot is following the better mood from the risk appetite at the beginning of the week, backed by positive data from the Chinese external sector over the weekend despite the steady inflation figures during October. Data wise in Oz, Home Loans dropped less than estimated during September, contracting 0.7% vs. the previous 0.9% pullback. The pair remains on recovery-mode after hitting fresh 2014 lows last week, although analysts warn of potential retracement ahead. Researchers at BBH argued “The RSI and MACD trended higher in October, and the pullback in prices in early November have not been validated. There is near-term scope for the Aussie to test the $0.8660-80 area, which would also offer a new selling opportunity”.
AUD/USD key levels
At the moment the pair is up 0.35% at 0.8663 with the next resistance at 0.8700 (psychological level) ahead of 0.8738 (high Nov.5) and then 0.8761 (high Nov.4). On the flip side, a breakdown of 0.8540 (2014 low Nov.6) would expose 0.8500 (psychological level).