By Fast Brokers – The Aussie darted beyond previous 2010 highs today after the EU’s decision to provide Greece with aid benefited the risk trade across the board. Due to the RBA’s comparatively hawkish stance coupled with solid Australia economic fundamentals the Aussie was ready to participate. However, the Aussie has come off of intraday highs after nearly testing November 2009 highs. Regardless, the Aussie’s uptrend is chugging along and with light data on the wire until Wednesday current momentums could carry on for the time being. Although the U.S. will release its Trade Balance figure tomorrow, this likely won’t have too large of an impact on the FX markets unless it registers a large deviation from analyst expectations. Meanwhile, Aussie investors should be paying close attention to developments in China. China is clamping down on lending as the government battles to contain its real estate bubble and inflationary pressures. China will release key data on Thursday, highlighted by CPI and GDP. Should China’s economic recovery cool from the implementation of tighter liquidity measures, the Aussie could be dragged lower amid lowered expectations for demand for Australia’s commodities. On the other hand, should China’s economic recovery plow ahead the Aussie could benefit directly since China’s rebound is helping fuel Australia’s economic growth.
Technically speaking, the Aussie faces technical barriers in the form of intraday and 11/17/09 highs. As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 4/9, and 4/5 lows. Additionally, the psychological .93 and.92 levels could serve as technical cushions over the near-term.
Price: .9291
Resistances: .9306, .9316, .9330, .9342, .9353, .9383
Supports: .9291, .9273, .9259, .9247, .9234, .9215, .9202
Psychological: .93, .92, November 2009 highs, April lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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