By Fast Brokers – It’s been another very active session for the AUD/USD again. After crash yesterday in reaction to the RBA’s decision to stand pat, the AUD/USD posted a sizable rally during the Asia trading session, almost reaching 2/1 highs. Money flowed into the Aussie after Australia’s Trade Balance deficit printed shallow of analyst expectations, implying that the RBA is being more cautious than negative economically by halting its rate hikes. However, the AUD/USD has reversed course again on heavy volume after U.S. ADP Non-Farm Employment Change data came in stronger than analyst expectations. The figure did come with a silver lining since the number of planned layoffs jumped. Regardless, the data led to a broad reversal in the risk trade, dragging the Aussie lower in wake of the RBA’s pause. Additionally, investors just received a U.S. Services PMI number below analyst expectations, further strengthening the Dollar as investors head for safety. Hence, it seems the Dollar is in a winning position at this point in time. Australia has more economic data on the way tomorrow, including Building Approvals and Retail Sales. Disappointing data could place further downwards pressure on the AUD/USD, whereas positive data could help buoy the currency pair. Investors will also digest monetary policy decisions from the BoE and ECB along with weekly U.S. Unemployment Claims. Hence, the FX markets could remain very active over the next 24-48 hours.
Technically speaking, the AUD/USD has our 1st and 2nd tier uptrend line serving as technical cushions along with intraday and 2/2 lows. As for the topside, the AUD/USD faces multiple downtrend lines along with 2/1 and intraday highs.
Price: .8863
Resistances: .8870, .8883, .8893, .8912, .8928, .8949
Supports: .8842, .8827, .8827, .8812, .8798, .8780
Psychological: .90, January highs and December lows
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Market Commentary provided by Fast Brokers.
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