26 Nov 2013
AUD/USD gets early boost on RBA Lowe comments
FXstreet.com (Barcelona) - AUD/USD is being supported by neutral headlines from RBA Deputy Governor Philip Lowe, who appears not to be as aggressive as RBA Governor Stevens has recently been on talking down the AUD.
The most relevant headlines saw Lowe saying: "Expects to see more adjustment in the AUD/USD to help come down in time", adding that "the threshold for intervention is fairly high."
The comments are short term Aussie positive for intraday traders, and price action is buying into this line of thinking, as the pair gets further away from 0.9110/20 support to currently test offers near 0.9185/90, Asian highs.
Technically, the picture in the AUD/USD still looks very bleak, yet a short term correction may be expected after the enormous bearish run seen last week, one that averaged falls in the tune of 100 pips/day.
On the upside, immediate resistance should be found between 0.92 and 0.9220 (Nov 21 swing low), with a break above allowing additional strength towards 0.9250 (intraday level). On the downside, bearish pressure should now break through strong support at 0.91/0.9120 or else a period of consolidation between 0.9120 and 0.9220 might be due.
The most relevant headlines saw Lowe saying: "Expects to see more adjustment in the AUD/USD to help come down in time", adding that "the threshold for intervention is fairly high."
The comments are short term Aussie positive for intraday traders, and price action is buying into this line of thinking, as the pair gets further away from 0.9110/20 support to currently test offers near 0.9185/90, Asian highs.
Technically, the picture in the AUD/USD still looks very bleak, yet a short term correction may be expected after the enormous bearish run seen last week, one that averaged falls in the tune of 100 pips/day.
On the upside, immediate resistance should be found between 0.92 and 0.9220 (Nov 21 swing low), with a break above allowing additional strength towards 0.9250 (intraday level). On the downside, bearish pressure should now break through strong support at 0.91/0.9120 or else a period of consolidation between 0.9120 and 0.9220 might be due.