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18 Feb 2014
AUD/USD rebounds back into positive territory on 0.9030/40
FXStreet (Guatemala) - AUD/USD slid from the high 0.9083 and founded a low of 0.9001 from where the paid bounced from and drifting back to the mid point of the decline, 0.9040.
AUD/USD has bounced on the bid with the release of the lowest read NAHB housing read in the US since May. NAHB housing read 46 vs the 56 consensus and previous 56 indicating the housing market trend in the US has taken a turn for the worst. Meanwhile, as startegists at TD Securities noted, “A more hawkish assessment of domestic demand prospects, combined with GDP and CPI upgrades in the SoMP seals off the opportunity for another rate cut (short of another exogenous shock of course)” They said that the Bank’s concern about inflation via the unexpected rapid pass-through of the lower exchange rate appears to be behind the RBA’s lack of jawboning so far this year. “This implies that the RBA sits tight with the AUD around $US0.90 awaiting another official CPI report (April 23). The February TD-MI Inflation Gauge is released March 3, where we’ll be watching the tradable/non-tradable split very closely!”.
AUD/USD Levels
The 20 DMA is 0.8874, the 50 DMA is 0.8904 and the 200 DMA is 0.9218. RSI (14) reads 49.69. Supports are ascending from 0.8949, 0.8966,0.8985, 0.9005. Spot is 0.9035 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.
AUD/USD has bounced on the bid with the release of the lowest read NAHB housing read in the US since May. NAHB housing read 46 vs the 56 consensus and previous 56 indicating the housing market trend in the US has taken a turn for the worst. Meanwhile, as startegists at TD Securities noted, “A more hawkish assessment of domestic demand prospects, combined with GDP and CPI upgrades in the SoMP seals off the opportunity for another rate cut (short of another exogenous shock of course)” They said that the Bank’s concern about inflation via the unexpected rapid pass-through of the lower exchange rate appears to be behind the RBA’s lack of jawboning so far this year. “This implies that the RBA sits tight with the AUD around $US0.90 awaiting another official CPI report (April 23). The February TD-MI Inflation Gauge is released March 3, where we’ll be watching the tradable/non-tradable split very closely!”.
AUD/USD Levels
The 20 DMA is 0.8874, the 50 DMA is 0.8904 and the 200 DMA is 0.9218. RSI (14) reads 49.69. Supports are ascending from 0.8949, 0.8966,0.8985, 0.9005. Spot is 0.9035 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.