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5 Jun 2014
AUD/USD knocking on 0.9300’s door
FXStreet (London) - AUD/USD has continued its upward march, trading just below 0.9300 despite an overnight session which saw spot rangebound between 0.9260-80 which has largely held for the past few days.
Overnight saw a measured but sharp drop for AUD/USD as Australian Trade Balance numbers missed expectations. Also, both Australian Import and Export figures improved too. However, despite the dip spot quickly recovered and held above the range before continuing higher.
Central Bank focus
Naturally today’s ECB meet will be the headline event to watch with activity expected, but this morning has also seen the Bank of England hold policy for a further month, with no adjustments anticipated on the horizon. On a longer term horizon, AUD has been targeted on the 0.9300 mark ever since making a low at 0.9233 in early June. Ross Burland, FXStreet Analyst notes that the pair has been positive, lead by RBA optimism for the outlook ahead, but economists are warning of future overheating.
AUD/USD Technicals
Daily RSI is in neutral territory at 48.96, while daily 2-standard deviation volatility bandwidth is at 223 pips and expanding. Current price is 0.9298, with resistance ahead at 0.9300 (Yesterday's High), 0.9300 (Daily Classic R1), 0.9302 (Daily High), 0.9310 (Weekly High) and 0.9324 (Daily Classic R2). Next support to the downside can be found at 0.9284 (Weekly Classic PP), 0.9283 (Daily 20 SMA), 0.9280 (Hourly 20 EMA), 0.9276 (Daily Classic PP) and 0.9276 (Daily Open). Looking at price patterns, we can see a Doji 4-hour candlestick formation,
Overnight saw a measured but sharp drop for AUD/USD as Australian Trade Balance numbers missed expectations. Also, both Australian Import and Export figures improved too. However, despite the dip spot quickly recovered and held above the range before continuing higher.
Central Bank focus
Naturally today’s ECB meet will be the headline event to watch with activity expected, but this morning has also seen the Bank of England hold policy for a further month, with no adjustments anticipated on the horizon. On a longer term horizon, AUD has been targeted on the 0.9300 mark ever since making a low at 0.9233 in early June. Ross Burland, FXStreet Analyst notes that the pair has been positive, lead by RBA optimism for the outlook ahead, but economists are warning of future overheating.
AUD/USD Technicals
Daily RSI is in neutral territory at 48.96, while daily 2-standard deviation volatility bandwidth is at 223 pips and expanding. Current price is 0.9298, with resistance ahead at 0.9300 (Yesterday's High), 0.9300 (Daily Classic R1), 0.9302 (Daily High), 0.9310 (Weekly High) and 0.9324 (Daily Classic R2). Next support to the downside can be found at 0.9284 (Weekly Classic PP), 0.9283 (Daily 20 SMA), 0.9280 (Hourly 20 EMA), 0.9276 (Daily Classic PP) and 0.9276 (Daily Open). Looking at price patterns, we can see a Doji 4-hour candlestick formation,