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27 Feb 2014
AUD/USD resilient near 0.8930
FXStreet (Edinburgh) - The Aussie dollar is surprisingly holding quite well on Thursday, with the AUD/USD keeping the 0.8935/30 region as the risk aversion is punishing the riskier assets.
AUD/USD consolidating below 0.9000
The pair quickly left behind the area around the 0.9000 psychological handle, hurt by much lower than expected Capex report during the last three months of 2013, down 5.2% vs. an expected flat reading. “Even without another rate cut from the RBA, the AUD is still vulnerable both to signs that the economy is failing to adjust to the end of the mining investment boom and to concerns regarding the pace of growth in China (Australia’s latest export partner). We maintain our view that AUD/USD could slip towards the 0.86 level on a 12 mth view. We have also reinstated our bearish AUD/NZD call”, noted Jane Foley, Senior Currency Strategist at Rabobank.
AUD/USD key levels
The pair is now losing 0.26% at 0.8942 with the immediate support at 0.8928 (low Feb.13) ahead of 0.8910 (55-d MA) and finally 0.8821 (61.8% of 2014 rise). On the upside, a break above 0.9050 (high Feb.24) would open the door to 0.9081 (high Feb.18) and then 0.9087 (2014 high Jan.13).
AUD/USD consolidating below 0.9000
The pair quickly left behind the area around the 0.9000 psychological handle, hurt by much lower than expected Capex report during the last three months of 2013, down 5.2% vs. an expected flat reading. “Even without another rate cut from the RBA, the AUD is still vulnerable both to signs that the economy is failing to adjust to the end of the mining investment boom and to concerns regarding the pace of growth in China (Australia’s latest export partner). We maintain our view that AUD/USD could slip towards the 0.86 level on a 12 mth view. We have also reinstated our bearish AUD/NZD call”, noted Jane Foley, Senior Currency Strategist at Rabobank.
AUD/USD key levels
The pair is now losing 0.26% at 0.8942 with the immediate support at 0.8928 (low Feb.13) ahead of 0.8910 (55-d MA) and finally 0.8821 (61.8% of 2014 rise). On the upside, a break above 0.9050 (high Feb.24) would open the door to 0.9081 (high Feb.18) and then 0.9087 (2014 high Jan.13).