AUD/USD Stays Range-Bound Around 90

The Aussie is fluctuating within a solid trading range right now as the currency pair battles its psychological .90 level again.  The AUD/USD did peak past our 2nd tier downtrend line yesterday, a key movement since it runs through 1/20 highs, or the .92 area.  Hence, the Aussie could be on the verge of a sizable topside breakout should fundamental and psychological factors work in the currency pair’s favor.  Meanwhile, the Aussie is still outperforming and has been a bed rock of consistency due to a tight stance from the RBA and encouraging Australia data sets.  Speaking of which, Australia’s Trade Balance revealed a smaller than anticipated deficit, signaling demand for the country’s commodities is still strong.  Additionally, Australia’s GDP printed in line with analyst expectations earlier this week.  Therefore, the RBA has fundamentals backing its hawkish monetary policy.  The Aussie is struggling a bit today though as the risk trade reacts badly to a poor U.S. Pending Home Sales figure.  However, the damage hasn’t been significant at this point in time.  The U.S. will also release Non-Farm Employment Change and headline Unemployment Rate numbers tomorrow, meaning volatility could pick up in the major Dollar pairs as the trading week comes to a close.  Additionally, investors should keep an eye out for any developments in the EU since there will be a highly publicized meeting between Greece and Germany tomorrow.

Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 3/2, and 3/1lows.  As for the topside, the Aussie has multiple downtrend lines serving as technical barriers along with March highs and the highly psychological .90 level.

Price: .9012

Resistances: .9011, .9025, .9041, .9057, .9074, .9090

Supports: .8993, .8981, .8965, .8950, .893, .8923

Psychological: .90, March highs and lows

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