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11 Mar 2013
Forex: AUD/USD recovers to 1.0240
The Australian dollar is gaining some traction now, recovering from session low in the proximities of 1.0200 after Chinese New Loans for the month of February fell to CNY 620 billion from CNY 1,070 billion in the previous month. The result was also short of expectations at CNY 750
“The substantial reduction in rate cut pricing for RBA easing has helped the Aussie avoid a break of 1.0100. However, with GDP distinctly sub-trend and key commodities trending lower, there is a limit to how far this repricing will proceed. 1.0115-1.0380 the range for now”, argues Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.15% at 1.0231
Next resistance levels align at 1.0245 (hourly highs Mar.8) followed by 1.0273 (MA21d) and then 1.0291 (high Mar.7).
On the flip side, a violation of 1.0211 (low Mar.8) would expose 1.0188 (low Mar.5) and finally 1.0172 (Lower Bollinger).
“The substantial reduction in rate cut pricing for RBA easing has helped the Aussie avoid a break of 1.0100. However, with GDP distinctly sub-trend and key commodities trending lower, there is a limit to how far this repricing will proceed. 1.0115-1.0380 the range for now”, argues Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.15% at 1.0231
Next resistance levels align at 1.0245 (hourly highs Mar.8) followed by 1.0273 (MA21d) and then 1.0291 (high Mar.7).
On the flip side, a violation of 1.0211 (low Mar.8) would expose 1.0188 (low Mar.5) and finally 1.0172 (Lower Bollinger).