11 Oct 2013
AUD/USD upwards amidst easing worries on US fiscal issues
FXstreet.com (Athens) – The AUD/USD has been trading consistently upwards since the kick off of the Asian trading session – apart from the last hour – mostly due to the fact that Republicans offered to raise the debt ceiling for 6 weeks, ahead a very light calendar data day.
AUD/USD upwards as market participants damp safe-haven assets on looming US budget deal
The AUD/USD is trading on the upper level on Friday since there are solid signs that even at the 12th hour and even for a very short time of period, there will be finally a raise regarding the US debt ceiling. Elaborating on, news wires reported earlier that Republicans offered to raise the debt ceiling for 6 weeks, so risk-appetite strikes back, market participants damp their safe haven currencies and the Aussie gets a solid support, driving the cross upwards. Ahead of, we are amidst a very light calendar data day regarding Australia, while in the US due to the government’s shutdown the only data which will be released is the consumer Michigan sentiment on October. Last but not least, yesterday’s increase in US initial jobless claims is mostly attributed (almost 66k) to a backlog of claims in California hitting the data after a systems upgrade and 15k was attributed to the government shutdown impacting non-federal workers.
Technical perspective on the AUD/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “AUD/USD is starting to stall ahead of its initial resistance at .9510/25. The market has started to erode its short term uptrend and this is likely to trigger a retest of its 38.2% retracement support at .9283. Below .9283, support lies at the .9233 August high and the .9196 55 day ma. Key short term resistance lies at .9510/25, while above .9283 we are unable to rule out scope for recovery. Above the .9525 recent high will target the .9580 May 2012 low and then the .9665 June high.”
AUD/USD upwards as market participants damp safe-haven assets on looming US budget deal
The AUD/USD is trading on the upper level on Friday since there are solid signs that even at the 12th hour and even for a very short time of period, there will be finally a raise regarding the US debt ceiling. Elaborating on, news wires reported earlier that Republicans offered to raise the debt ceiling for 6 weeks, so risk-appetite strikes back, market participants damp their safe haven currencies and the Aussie gets a solid support, driving the cross upwards. Ahead of, we are amidst a very light calendar data day regarding Australia, while in the US due to the government’s shutdown the only data which will be released is the consumer Michigan sentiment on October. Last but not least, yesterday’s increase in US initial jobless claims is mostly attributed (almost 66k) to a backlog of claims in California hitting the data after a systems upgrade and 15k was attributed to the government shutdown impacting non-federal workers.
Technical perspective on the AUD/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “AUD/USD is starting to stall ahead of its initial resistance at .9510/25. The market has started to erode its short term uptrend and this is likely to trigger a retest of its 38.2% retracement support at .9283. Below .9283, support lies at the .9233 August high and the .9196 55 day ma. Key short term resistance lies at .9510/25, while above .9283 we are unable to rule out scope for recovery. Above the .9525 recent high will target the .9580 May 2012 low and then the .9665 June high.”