7 Apr 2014
AUD/USD keeps defying gravity
FXStreet (Bali) - Following a strong rise to a new multi-month high of 0.9308 in response to a 'not good enough' NFP, the AUD/USD opened on Monday at 0.9280.
AUD/USD continues to defy gravity by keeping the exchange rate at hefty levels not seen since late Nov 2013, an occurrence not surprising at all given the recent technical and fundamental developments.
On the technical side, the inverted head and shoulder breakout during the end of March fueled the pair with a bullish tone which still persists on the daily.
On the fundamental front, rosier Australian economic indicators hint at tentative successful transition from the mining boom era, which coupled with the pick up in inflation and house prices, is keeping the RBA neither dovish nor as vocal on the AUD high levels.
The key levels to watch for today will be 0.9308, 0.9335 (61.8% fib retrac from the Oct-Jan decline) ahead of 0.94. On the downside, any setback sees 0.9255/60 as immediate support, followed by 0.9230 and 0.9215.
AUD/USD continues to defy gravity by keeping the exchange rate at hefty levels not seen since late Nov 2013, an occurrence not surprising at all given the recent technical and fundamental developments.
On the technical side, the inverted head and shoulder breakout during the end of March fueled the pair with a bullish tone which still persists on the daily.
On the fundamental front, rosier Australian economic indicators hint at tentative successful transition from the mining boom era, which coupled with the pick up in inflation and house prices, is keeping the RBA neither dovish nor as vocal on the AUD high levels.
The key levels to watch for today will be 0.9308, 0.9335 (61.8% fib retrac from the Oct-Jan decline) ahead of 0.94. On the downside, any setback sees 0.9255/60 as immediate support, followed by 0.9230 and 0.9215.