AUD/USD Tests .90

The Aussie tested the psychological .90 level again, but to no avail.  However, the currency pair is holding up relatively well considering the large selloffs taking place in the EUR/USD and Cable.  Investors are on the fence in regards to whether the RBA will raise rates following tomorrow’s monetary policy meeting.  However, considering uncertainty in the EU hasn’t died down, and uncertainty in the UK is just flaying up, it wouldn’t be surprising if the RBA opts to maintain a neutral policy stance once again.  On the other hand, should the RBA surprise by raising or lowering its benchmark rate, the AUD/USD could experience sizable gains or losses, respectfully.  Meanwhile, debt issues in Greece and now worries in the UK are certainty developments to be concerned about.  Further deterioration of these currencies could eventually drag the Aussie lower should the global economy feel the weight of the impact.  Today’s Chinese Manufacturing PMI data printed lighter than anticipated.  Should China continue to press on the breaks and cool its economy, this could also place downward pressure in the AUD/USD due to lower anticipated demand for Australia’s commodities.  However, near-term focus will likely be on the RBA tomorrow’s along with Australian Building Approvals and Retail Sales data.  The UK and EU will release their own data sets tomorrow as well, not to mention Australia’s GDP figure due Wednesday.  Hence, activity could pick up in the AUD/USD over the next 24-48 hours.

Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 2/23, and 2/25 lows.  As for the topside, the Aussie has multiple downtrend lines serving as technical barriers along with February highs and the highly psychological .90 level should it be retested.

Price: .8963

Resistances: .8981, .8993, .9011, .9024, .9041, .9062

Supports: .8957, .8944, .8930, .8916, .8901, .8886

Psychological: .90, February highs and lows

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