Back
21 Oct 2013
AUD/USD upwards ‘flirting’ with the 200-daily SMA at 0.9755
FXstreet.com (Athens) – The AUD/USD is moving slightly upwards since the opening in Asia trading session after precisely eight consecutive “green” days of high gains.
AUD/USD amidst a tight range after a week of stellar gains, ahead of crucial data
The AUD/USD is trading at a confined range since the early opening on Sunday, as it is more than plausible that due to a slight profit taking and to the general recover of the American dollar, the cross eases a bit. Briefly, we have witnessed a surge of the cross (now hovering at 0.9672) since the low as of 5th August (0.8847), which is roughly 820 pips or a not modest at all rise by more than 9%. However, the super dovish Fed expectations, the falling volatility and the strike back of the risk-appetite might support the carry trade, thus, the “Aussie” is probably to fly near its 200-daily MA at 0.9755 area. The week ahead we will be amidst a litany of US data with market participants attention mostly focused on Tuesday’s NFP, while on Wednesday we will have the Australian CPI release which might influence the cross at a major extent.
Technical Aspects and Strategic Bias on the AUD/USD
The AUD/USD enjoyed a mini – rally last week mostly on the resolution of the US political circus but also on the broadly and constantly growing view that the RBA will not change its monetary policy. On the other hand, while everybody had been betting on “Fed’s tapering”, under the new political drama the tapering will come probably “later” than “sooner.” Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”
AUD/USD amidst a tight range after a week of stellar gains, ahead of crucial data
The AUD/USD is trading at a confined range since the early opening on Sunday, as it is more than plausible that due to a slight profit taking and to the general recover of the American dollar, the cross eases a bit. Briefly, we have witnessed a surge of the cross (now hovering at 0.9672) since the low as of 5th August (0.8847), which is roughly 820 pips or a not modest at all rise by more than 9%. However, the super dovish Fed expectations, the falling volatility and the strike back of the risk-appetite might support the carry trade, thus, the “Aussie” is probably to fly near its 200-daily MA at 0.9755 area. The week ahead we will be amidst a litany of US data with market participants attention mostly focused on Tuesday’s NFP, while on Wednesday we will have the Australian CPI release which might influence the cross at a major extent.
Technical Aspects and Strategic Bias on the AUD/USD
The AUD/USD enjoyed a mini – rally last week mostly on the resolution of the US political circus but also on the broadly and constantly growing view that the RBA will not change its monetary policy. On the other hand, while everybody had been betting on “Fed’s tapering”, under the new political drama the tapering will come probably “later” than “sooner.” Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”