26 Jan 2015
AUD/USD is quiet ahead of major events
FXStreet (Guatemala) - AUD/USD is currently trading at with a high of a and low of and on the day so far in the US session.
AUD/USD is making a minor recovery from the lows having recently taken out the 0.8000 level for the first time since 2009. With a relatively slow start to the week, we look ahead to key events taking place further in. Wednesday comes with Australia's CPI for the fourth quarter. This will be closely monitored and traders will be concerned around the RBA next month given the recent surprise cut from the BoC.
We also have the FOMC January meeting this week and volatility is expected. While the markets are pricing in a hike this year, "patience" is a term that has been recently published by the Fed in respect of timings and data will be key in respect of jobs growth and wages. Just recently, average hourly earnings fell, and retail sales were also disappointing.
Technically, Karen Jones, chief analyst at Commerzbank noted that we have a short term support line at 0.7826 and the base of a 4 month down channel at 0.7660. "Intraday charts are suggesting only minor recovery to .7950, .8005 will be seen ahead of further weakness. Initial resistance is .8034 (7th Jan low), .8119 (20 day ma). Key resistance is the .8213 downtrend. A close above here is needed to alleviate the bearish pressure and would initiate a deeper retracement to .8262/98 (15th Jan high and 55 day ma)."
AUD/USD is making a minor recovery from the lows having recently taken out the 0.8000 level for the first time since 2009. With a relatively slow start to the week, we look ahead to key events taking place further in. Wednesday comes with Australia's CPI for the fourth quarter. This will be closely monitored and traders will be concerned around the RBA next month given the recent surprise cut from the BoC.
We also have the FOMC January meeting this week and volatility is expected. While the markets are pricing in a hike this year, "patience" is a term that has been recently published by the Fed in respect of timings and data will be key in respect of jobs growth and wages. Just recently, average hourly earnings fell, and retail sales were also disappointing.
Technically, Karen Jones, chief analyst at Commerzbank noted that we have a short term support line at 0.7826 and the base of a 4 month down channel at 0.7660. "Intraday charts are suggesting only minor recovery to .7950, .8005 will be seen ahead of further weakness. Initial resistance is .8034 (7th Jan low), .8119 (20 day ma). Key resistance is the .8213 downtrend. A close above here is needed to alleviate the bearish pressure and would initiate a deeper retracement to .8262/98 (15th Jan high and 55 day ma)."