By Fast Brokers – The Aussie is still trading below its psychological .90 level today despite a bit of intraday volatility stemming from concerns about an overheating Chinese economy. It is well known that Chinese demand for Australian resources has driven the Aussie higher, which means it is understandable that a bear market in the SCI is weighing on the currency pair right now. Additionally, fiscal problems in the EU are certainly no help as the FX risk struggles across the board. Meanwhile, Australia home loans declined at a swifter rate than expected, implying that the RBA’s hawkish monetary policy may finally be yielding their intended results. Australia will light up the data wire again tomorrow by releasing employment change data along with its headline employment rate. This could help give us a more comprehensive picture of Australia’s present economic status. Should employment also waver this could place further downward pressure on the Aussie since it could be difficult for the RBA to raise its benchmark rate again at next month’s monetary policy meeting. On the other hand, should the growth in employment accelerate this could help buoy the Aussie and get the currency pair back above its highly psychological .90 level.
Technically speaking, the Aussie faces technical barriers in the form of the psychological .90 area along with intraday and 5/10 highs. As for the downside, the Aussie has technical cushions in the form of intraday and 5/7 lows along with the psychological .89 and .88 levels.
Price: .8947
Resistances: .8964, .8976, .8987, .9001, .9017, .9036, .9057
Supports: .8947, .8932, .8920, .8908, .8888, .8879, .8855
Psychological: .90, .89, .88
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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