By Fast Brokers – The Aussie is being dragged lower today due to considerable weakness in the Euro. Greek bond yields have hit an all-time high and EU budget deficits are widening. The deteriorating fiscal situation in the EU has stirred uncertainty all around the risk trade as the Cable and gold also retreat. However, the Aussie has managed to stay in a somewhat respectable positive due to its relative strength stemming from the RBA’s hawkish monetary stance. Australia has released little economic data this week, allowing the Aussie to move according to its positive psychological forces. Stevens will speak tomorrow and it will be interesting to see whether he maintains the positive sentiment seen in the RBA’s recent meeting minutes. If so, the Aussie should hold onto its relative strength. However, the EU, UK, and U.S. will likely hog the spotlight. That being said, investors should keep an eye on the data wire as the European trading session rolls around. If the data should turn sour this could weigh on the risk trade as a whole, Aussie included. Additionally, corporate earnings will continue to flood in and results should have a noticeable impact on the greenback.
Technically speaking, the Aussie faces technical barriers in the form of 4/21, 4/15 and 4/12 highs. Additionally, the psychological .93 and .94 levels could serve as psychological obstacles over the near-term. As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with 4/13 and 4/19 lows.
Price: .9258
Resistances: .9272, .9282, .9292, .9306, .9316, .9329
Supports: .9257, .9245, .9234, .9222, .9209, .9192
Psychological: .93, .94, .92, April highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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