7 Aug 2013
AUD/USD extends the decline
FXstreet.com (Edinburgh) -The Aussie dollar is eroding recent gains, with the <a href="http://www.fxstreet.com/technical-studies/currencies/audusd/">AUD/USD trading around 0.8960 after peaking in the boundaries of 0.9000 the figure overnight.
AUD/USD capped by 0.9000
After two consecutive sessions with gains, weakness seems to be taking over again after the recent RBA’s rate cut bolstered the upside momentum. Data-wise, Australian Home Loans expanded 2.7% during June and the Performance of Construction index sponsored by AiG advanced to 44.1 in July. Greg Gibbs, FX Trading Strategist at RBS, commented, “It is surprisingly how much the AUD has lacked any bounce over recent months. This may speak to deep scepticism over the Chinese economy and a deepening fear of the end of the mining boom… We see risk high now of a short covering rebound in AUD towards 0.93”.
AUD/USD levels to watch
At the moment the pair is down 0.23% at 0.8964 with the next support at 0.8907 (low Aug.6) followed by 0.8848 (low Aug.5) and finally 0.8846 (low Aug.27 2010). On the upside, a break above 0.9006 (high Aug.6) would bring 0.9028 (38.2% of 0.9320-0.8848) and then 0.9065 (MA10d).
AUD/USD capped by 0.9000
After two consecutive sessions with gains, weakness seems to be taking over again after the recent RBA’s rate cut bolstered the upside momentum. Data-wise, Australian Home Loans expanded 2.7% during June and the Performance of Construction index sponsored by AiG advanced to 44.1 in July. Greg Gibbs, FX Trading Strategist at RBS, commented, “It is surprisingly how much the AUD has lacked any bounce over recent months. This may speak to deep scepticism over the Chinese economy and a deepening fear of the end of the mining boom… We see risk high now of a short covering rebound in AUD towards 0.93”.
AUD/USD levels to watch
At the moment the pair is down 0.23% at 0.8964 with the next support at 0.8907 (low Aug.6) followed by 0.8848 (low Aug.5) and finally 0.8846 (low Aug.27 2010). On the upside, a break above 0.9006 (high Aug.6) would bring 0.9028 (38.2% of 0.9320-0.8848) and then 0.9065 (MA10d).