By Fast Brokers – The Aussie has outperformed since hitting bottom on 5/25, popping back towards 5/24 highs in reaction to a late risk trade rally yesterday. The Aussie is now trying to clear downtrend lines running through 5/20 and 5/19 highs in order to undergo a more substantial rally. However, markets are still under pressure considering there hasn’t been any positive news emanating from the EU. On the other hand, no news is good news at this point considering the downward pressure inflicted by Spain on Monday. Australia was relatively light on the data wire again today, releasing a construction work figure which printed below analyst expectations. While it shows that the RBA’s rate hikes may be having their intended impact, investors shouldn’t read too far into this figure for the time being. Investors should also keep in mind that new vehicle sales shot higher last month. Regardless, the RBA will be hard pressed to raise rates again next month considering all of the negative economic headwinds circling the globe at the moment. The U.S. will dominate the data wire today with the release of DGO and new home sales figures. However, attention will likely remain focused on the EU as investors look for any news regarding the union’s fiscal state. Australia will release private CapEx tomorrow followed by U.S. Prelim GDP. Hence, the markets may get active once again over the next 24-48 hours.
Technically speaking, the Aussie faces technical barriers in the form of multiple downtrend lines along with intraday and 5/21 highs. As for the downside, the Aussie has technical cushions in the form of May 2010 and September 2009 lows. Additionally, the psychological .80 area could serve as a solid technical cushion should it be tested.
Price: .8244
Resistances: .8246, .8268, .8303, .8329, .8348, .8363
Supports: .8224, .8205, .8176, .8150, .8123, .8101
Psychological: .80, .83, May 2010 and September 2009 lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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