23 Jan 2014
China is the real power behind the AUD throne today
FXstreet.com (Moscow) - AUD/USD crashed the key support of 0.8800 and fell all the way to 0.8887 as the downside picks up steam
Higher Australian CPI is not a key to AUD success
Yesterday the Australian CPI helped to push AUD/USD higher as the inflation data reduced the chance of RBA rate cut in the nearest future, but, sure enough, the central bank is not happy with the rising inflation. Other economic reports including the labour market data paints pretty gloomy picture of the Australian economy, while the signs of the slow down in China make things even worse. The flash China PMI released earlier today fell below 50 - the line in the sand between the economic expansion and contraction. No good news for the China-dependent Australian economy. So the overall AUD sentiment is skewed to the downside, while the break below 0.8800 darkens the short-term technical picture. If the pair drops below Monday’s low at 0.8745, the downside will accelerate to the next support at 0.8700.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8842, with support below at 0.8794, 0.8738 and 0.8690, with resistance above at 0.8898, 0.8946 and 0.9002. Hourly Moving Averages are bearish, with the 200SMA at 0.8882 and the daily 20EMA at 0.8900. Hourly RSI is neutral at 32
Higher Australian CPI is not a key to AUD success
Yesterday the Australian CPI helped to push AUD/USD higher as the inflation data reduced the chance of RBA rate cut in the nearest future, but, sure enough, the central bank is not happy with the rising inflation. Other economic reports including the labour market data paints pretty gloomy picture of the Australian economy, while the signs of the slow down in China make things even worse. The flash China PMI released earlier today fell below 50 - the line in the sand between the economic expansion and contraction. No good news for the China-dependent Australian economy. So the overall AUD sentiment is skewed to the downside, while the break below 0.8800 darkens the short-term technical picture. If the pair drops below Monday’s low at 0.8745, the downside will accelerate to the next support at 0.8700.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8842, with support below at 0.8794, 0.8738 and 0.8690, with resistance above at 0.8898, 0.8946 and 0.9002. Hourly Moving Averages are bearish, with the 200SMA at 0.8882 and the daily 20EMA at 0.8900. Hourly RSI is neutral at 32