13 Sep 2013
AUD/USD weakness here to stay, while below 0.9280...
FXstreet.com (Barcelona) - The healthy Aussie rally came to a sudden and rather unexpected end following an awful jobs report out of Australia yesterday, which seems to have acted as a well-timed reminder of what side is still dominating the AUD/USD charts.
Sellers rule the rooster
While a whisker away from blowing reported large stops above the 0.9350 handle yesterday, the downbeat jobs triggered a cascade of heavy offers in the Australian Dollar, with the abrupt reversal being confirmed by the print of a bearish outside day below 0.9280 on Thursday, after collapsing as low as 0.9225 along the US session, before a timid recovery got underway.
In a textbook technical retest, the AUD/USD rose to flirt with 0.9280 back again late US, yet was rejected to the pip by renewed committed sellers, whose conviction just took the exchange rate back below the 0.9250/55 support zone as we type these lines.
Range with risk to further downside anticipated
In terms of fundamentals, there will be no more first-tier drivers for neither currency until FOMC next Sept 17, barring any geopolitical tension coming back. This means a range environment - risk skewed to the downside - may ensue until FOMC.
It is more than probable that given the bearish technical close on Thursday, large sectors of the AUD/USD trading community may have turned their views to the bearish side again. Immediate support comes at 0.9225/35 - early Thur US lows - ahead of 0.9190/0.92 and deeper falls towards 0.9120 - Sept 5 swing low -. On the upside, a break and hold above 0.9280 first in needed.
Sellers rule the rooster
While a whisker away from blowing reported large stops above the 0.9350 handle yesterday, the downbeat jobs triggered a cascade of heavy offers in the Australian Dollar, with the abrupt reversal being confirmed by the print of a bearish outside day below 0.9280 on Thursday, after collapsing as low as 0.9225 along the US session, before a timid recovery got underway.
In a textbook technical retest, the AUD/USD rose to flirt with 0.9280 back again late US, yet was rejected to the pip by renewed committed sellers, whose conviction just took the exchange rate back below the 0.9250/55 support zone as we type these lines.
Range with risk to further downside anticipated
In terms of fundamentals, there will be no more first-tier drivers for neither currency until FOMC next Sept 17, barring any geopolitical tension coming back. This means a range environment - risk skewed to the downside - may ensue until FOMC.
It is more than probable that given the bearish technical close on Thursday, large sectors of the AUD/USD trading community may have turned their views to the bearish side again. Immediate support comes at 0.9225/35 - early Thur US lows - ahead of 0.9190/0.92 and deeper falls towards 0.9120 - Sept 5 swing low -. On the upside, a break and hold above 0.9280 first in needed.