3 Jan 2014
AUD/USD challenges 0.9000
FXstreet.com (Córdoba) - The AUD/USD rose sharply throughout the last sessions and reached a fresh 3-week high before losing momentum just a few pips shy of the 0.9000 psychological level.
The AUD/USD climbed more than 100 pips underpinned by better risk sentiment, peaking at 0.8998 in recent dealings. Even though the pair has failed to break above the 0.9000 mark, it continues to threaten that zone, currently trading at the 0.8990 area, up 0.9% on the day.
AUD/USD outlook
"AUD finished last year as the underdog, down 14.2%. In the G10 space this was beaten only by the ¥ down 17.67%", said Jonathan Cavenagh, analyst at WIB IQ. "Overall, we feel that the yield differential picture and bulk commodities suggest the AUD is cheap at these levels, particularly on a cross basis. AUD versus some of the European currencies (EUR, GBP and CHF etc) have probably got the greatest scope to rally, with positioning in these pairs still likely to be fairly stretched to the downside".
AUD/USD technical levels
As for technical levels, if the Aussie breaks decisively above 0.9000, next resistances are seen at 0.9079 (Dec 12 high) and 0.9100 (psychological level). On the flip side, supports could be faced at 0.8884 (daily low) and 0.8842 (Jan 2 low) ahead of 0.8820 (Dec 18 low).
The AUD/USD climbed more than 100 pips underpinned by better risk sentiment, peaking at 0.8998 in recent dealings. Even though the pair has failed to break above the 0.9000 mark, it continues to threaten that zone, currently trading at the 0.8990 area, up 0.9% on the day.
AUD/USD outlook
"AUD finished last year as the underdog, down 14.2%. In the G10 space this was beaten only by the ¥ down 17.67%", said Jonathan Cavenagh, analyst at WIB IQ. "Overall, we feel that the yield differential picture and bulk commodities suggest the AUD is cheap at these levels, particularly on a cross basis. AUD versus some of the European currencies (EUR, GBP and CHF etc) have probably got the greatest scope to rally, with positioning in these pairs still likely to be fairly stretched to the downside".
AUD/USD technical levels
As for technical levels, if the Aussie breaks decisively above 0.9000, next resistances are seen at 0.9079 (Dec 12 high) and 0.9100 (psychological level). On the flip side, supports could be faced at 0.8884 (daily low) and 0.8842 (Jan 2 low) ahead of 0.8820 (Dec 18 low).