By Fast Brokers – Like the Cable the Aussie has staged an impressive rally from Thursday lows, hurtling back above .90 and 3/26 lows as investors digest the EU’s announcement of a $1trillion bailout package. However, the Aussie’s rally is cooling as the currency pair battles its highly psychological .90 area. That being said, it will be important to see the Aussie post a follow through rally over the next few days and get back above 5/5 highs as a sign of good faith in regards to accepting a downturn in uncertainty. Australia’s job advertisements data turned negative last month, a discouraging development in regards to the nation’s economic performance and the likeliness of another RBA rate hike next month. Focus will be on China during tomorrow’s Asia trading session with an action-packed data set on deck. China will release CPI, industrial production, new loans, and other data points. China’s economic data tends to have a more noticeable impact on the Aussie since Australia’s present economic performance is highly reliant upon resource demand from emerging nations. That being said, should China’s data actually cool down this could place some downward pressure on the Aussie. On the other hand, encouraging data from China could help boost the Aussie towards 5/5 highs. Regardless, the next 24 hours could be active.
Technically speaking, the Aussie faces technical barriers in the form of the psychological .90 area along with intraday and 5/5 highs. As for the downside, the Aussie has technical cushions in the form of intraday and 5/6 lows along with the psychological .89 and .88 levels.
Price: .9003
Resistances: .9017, .9036, .9057, .9076, .9090, .9104, .9118
Supports: .9001, .8987, .8978, .8964, .8947, .8932, .8908
Psychological: .90, .89, .88
(click chart to enlarge)
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