22 Oct 2013
AUD/USD challenging highs near 0.9680
FXstreet.com (Edinburgh) -The Aussie dollar keeps pushing higher on Tuesday, now lifting the AUD/USD to test multi-month highs below 0.9690.
AUD/USD resilient ahead of NFP
The next release of the US NFP emerges as the immediate risk event for the pair, as a positive result could add fuel to the current USD momentum. However, in that case, the reaction in the greenback would prove to be ephemeral as the data would reflect the market conditions pre-shutdown. Jane Foley, Senior Strategist at Rabobank, argued “In tune with our downward revisions to the USD, we have revised higher our forecasts for AUD/USD on a 1 to 6 mth view. That said, we remain less optimistic about the fortunes of the AUD further out based on our view that the Chinese economy is likely to run into structural impediments to growth”.
AUD/USD levels to watch
As of writing the pair is up 0.16% at 0.9671 with the next resistance at 0.9680 (high Oct.18) ahead of 0.9758 (MA200d) and then 0.9765 (high Jun.4). On the flip side, a break below 0.9604 (low Oct.18) would expose 0.9536 (MA10d).
AUD/USD resilient ahead of NFP
The next release of the US NFP emerges as the immediate risk event for the pair, as a positive result could add fuel to the current USD momentum. However, in that case, the reaction in the greenback would prove to be ephemeral as the data would reflect the market conditions pre-shutdown. Jane Foley, Senior Strategist at Rabobank, argued “In tune with our downward revisions to the USD, we have revised higher our forecasts for AUD/USD on a 1 to 6 mth view. That said, we remain less optimistic about the fortunes of the AUD further out based on our view that the Chinese economy is likely to run into structural impediments to growth”.
AUD/USD levels to watch
As of writing the pair is up 0.16% at 0.9671 with the next resistance at 0.9680 (high Oct.18) ahead of 0.9758 (MA200d) and then 0.9765 (high Jun.4). On the flip side, a break below 0.9604 (low Oct.18) would expose 0.9536 (MA10d).