18 Feb 2014
AUD/USD supported at 0.9000
FXStreet (Edinburgh) - The buying interest is back to the Aussie dollar, lifting the AUD/USD to the area of 0.9025/30 after dipping to the key support at 0.9000.
AUD/USD recovers ground lost
A continuation of the renewed hawkish stance from the RBA prompted the pair to climb to the vicinity of 0.9080 overnight, although a stronger tone from the greenback dragged it back to the boundaries of the psychological mark at 0.9000. Christin Tuxen, Senior Analyst at Danske Bank, argued, “We are now much less convinced RBA will cut further and with the RBA withdrawing its previous commitment to send the currency lower, the pace of the AUD sell-off should soften. Still, AUD/USD should fundamentally remain under pressure as a struggling Australian economy (and a weaker China) contrasts with a decent US outlook. This should continue to make the AUD carry trade less of an appealing bet on a 12M horizon”.
AUD/USD key levels
As of writing the pair down 0.05% at 0.9024 with the immediate support at 0.9000 (psychological level) ahead of 0.8966 (low Feb.14) and then 0.8928 (low Feb.13). On the flip side, a break above 0.9070 (high Feb.17) would open the door to 0.9087 (high Jan.13) ahead of 0.9152 (high Dec.11).
AUD/USD recovers ground lost
A continuation of the renewed hawkish stance from the RBA prompted the pair to climb to the vicinity of 0.9080 overnight, although a stronger tone from the greenback dragged it back to the boundaries of the psychological mark at 0.9000. Christin Tuxen, Senior Analyst at Danske Bank, argued, “We are now much less convinced RBA will cut further and with the RBA withdrawing its previous commitment to send the currency lower, the pace of the AUD sell-off should soften. Still, AUD/USD should fundamentally remain under pressure as a struggling Australian economy (and a weaker China) contrasts with a decent US outlook. This should continue to make the AUD carry trade less of an appealing bet on a 12M horizon”.
AUD/USD key levels
As of writing the pair down 0.05% at 0.9024 with the immediate support at 0.9000 (psychological level) ahead of 0.8966 (low Feb.14) and then 0.8928 (low Feb.13). On the flip side, a break above 0.9070 (high Feb.17) would open the door to 0.9087 (high Jan.13) ahead of 0.9152 (high Dec.11).