6 Jan 2014
AUD/USD on track to retest 0.90, Yen surge supportive
FXstreet.com (Bali) - As light flows remain a predominant feature in early January, the Australian Dollar continues to outperform in Asia, supported by a surging Yen, which follows the bear's tail in the Nikkei 225, down over 1.6%.
AUD tightly correlated to Yen
The rebound in the AUD/USD, currently exchanging hands at around 0.8980 session highs, comes in sympathy with the selling flows being noted in the USD/JPY - main catalyst for a higher Aussie -, as the negative correlation between the two pairs, notable in Dec 2013, continues.
AUD/USD technicals
Technically, looking at the 4 hours chart, readings present a neutral stance, according to Valeria Bednarik, Chief Analyst at FXstreet.com, noting that "further slides below 0.8910 support are required to confirm a downside continuation in the pair for the upcoming sessions." On the upside, a break and close above 0.90 (daily Kijun) would set the stage for a stronger recovery.
AUD tightly correlated to Yen
The rebound in the AUD/USD, currently exchanging hands at around 0.8980 session highs, comes in sympathy with the selling flows being noted in the USD/JPY - main catalyst for a higher Aussie -, as the negative correlation between the two pairs, notable in Dec 2013, continues.
AUD/USD technicals
Technically, looking at the 4 hours chart, readings present a neutral stance, according to Valeria Bednarik, Chief Analyst at FXstreet.com, noting that "further slides below 0.8910 support are required to confirm a downside continuation in the pair for the upcoming sessions." On the upside, a break and close above 0.90 (daily Kijun) would set the stage for a stronger recovery.