AUD/USD has the technical green light in the short-term

FXstreet.com (Barcelona) - The AUD/USD got a big, unexpected lift Tuesday as the RBA apparently caught the world leaning against it once again. Not even good US data could stem the bullish tide.

RBA policy now is flat with no more easing bias – which threw bears for a loop

The Reserve Bank of Australia left rates unchanged Tuesday but changed some of the language in their policy statement – which professional “parsers” took as a signal that the RBA is now completely neutral (instead of biased towards easing). In an example of strange timing, China came out with slightly weaker-than-expected Non-Manufacturing PMI right after the RBA’s release. Then, just to further cloud the issue, Aussie retail sales data was released and came in well below estimates. Still though, traders remain convinced the RBA is focusing on containing potentially unhealthy housing / construction-related inflation.

The rest of this week brings AUD/USD traders plenty more data to digest from Australia and the US – here’s the schedule:

• Wednesday: Australian GDP; US Trade Balance; US Fed Beige Book; Fed’s Dudley speaking
• Thursday: Fed’s Kocherlakota speaking; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI
• Friday: US Monthly Employment Report

Technical outlook for AUD/USD

Technicians are saying that AUD/USD should continue to work its way higher until the macro correction resistance / Fibonacci retracement resistance at 0.9264 is reached. Shorter-term resistance comes into play at 0.9083, 0.9129 and 0.9157 – all of which are shorter-term Fibonacci projections. Support for AUD/USD comes in at 0.9031 and 0.9000 – both of which are horizontal line supports.

EUR/JPY well offered below 131.50

The EUR/JPY foreign exchange cross rate is currently trading at 131.27 near session highs, but still below NY session and yesterday's Asian session weekly highs at 131.40/49, up +1.1% for the week so far, mostly on the back of Yen weakness and Nikkei surging more than +4%.
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