By Fast Brokers – The AUD/USD is struggling to stay above May lows as the currency pair deals with worries in China along with concern that the RBA will remain in a neutral stance for quite some time. Australia’s economic data hasn’t been strong to the point where the RBA would require another 25 bp hike. Meanwhile, conditions in the EU are still very unstable and as the EUR/USD deteriorates the Aussie follows suit since the RBA has openly deliberated the impact of a slowdown in the EU on Australia’s growth. Though Australia is quiet on the data wire today, it will lead the pack tomorrow with the release of home loans data. Should home loans exceed analyst estimates this could help prop up the Aussie should May lows hold over the next 24 hours. Meanwhile, EU finance ministers are meeting to discuss recent developments in the union. Hence, investors should keep a close eye on the EU news wires over the next 24-48 hours. Additionally, investors should monitor the SCI’s ability to hold 2500 since weakness in Chinese equities tend to weigh on the Aussie.
Technically speaking, the Aussie still faces multiple downtrend lines along with 5/24 and 6/3 highs. As for the downside, the Aussie has technical cushions in the form of 5/25 lows and the highly psychological .80 level.
Price: .8179
Resistances: .8197, .8234, .8266, .8305, .8330, .8360, .8379
Supports: .8151, .8127, .8087, .8066, .8035, .8013, .7985
Psychological: .82,.80, May lows and June highs
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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