29 Oct 2013
AUD/USD challenging the downside
FXstreet.com (London) - AUD/USD has extended its losses to below the previous main swing high around 0.9520 but is holding support with RSI reading below 30.
Lee Hardman, strategist at The Bank of Tokyo-Mitsubishi UFJ explained the Australian dollar has underperformed extending its recent retracement lower after failing to break above resistance from its 200-day moving at around 0.9750 on the 23rd October. “Australian dollar weakness has accelerated overnight following comments from RBA Governor Stevens who stated that the Australian dollar is likely to be “materially lower” at some point with its current elevated level not supported by relative costs and productivity...The comments highlight that the Australian dollar is currently viewed as being highly overvalued…however with Fed QE tapering delayed into 2014, the Australian dollar should continue to derive support from carry demand in the near-term”.
AUD/USD Levels
The 20 DMA is 0.9523, the 50 DMA is 0.9329 and the 200 DMA is 0.9734. RSI (14) reads 26.62. Supports are ascending from 0.9410 and 0.9469. Spot is currently 0.9482 while resistances are 0.9515, 0.9585, 0.9634 and 0.9671.
Lee Hardman, strategist at The Bank of Tokyo-Mitsubishi UFJ explained the Australian dollar has underperformed extending its recent retracement lower after failing to break above resistance from its 200-day moving at around 0.9750 on the 23rd October. “Australian dollar weakness has accelerated overnight following comments from RBA Governor Stevens who stated that the Australian dollar is likely to be “materially lower” at some point with its current elevated level not supported by relative costs and productivity...The comments highlight that the Australian dollar is currently viewed as being highly overvalued…however with Fed QE tapering delayed into 2014, the Australian dollar should continue to derive support from carry demand in the near-term”.
AUD/USD Levels
The 20 DMA is 0.9523, the 50 DMA is 0.9329 and the 200 DMA is 0.9734. RSI (14) reads 26.62. Supports are ascending from 0.9410 and 0.9469. Spot is currently 0.9482 while resistances are 0.9515, 0.9585, 0.9634 and 0.9671.