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9 Feb 2015
AUD/USD: Critical support remains at 0.7735 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet, explained thatThe AUD/USD pair ended the week mute, closing 10 pips above its daily opening, in a perfect doji.
Key quotes:
"The pair however, set a fresh multi-year low of 0.7625, level not seen since April 2009, following the surprise decision of the RBA to cut rates to record lows of 2.25%. The pair bounced up to 0.785 before retracing to pre-RBA's decision level, neutralizing the effect of the latest Governors' Stevens decision."
"For this week, the pair will have to deal with Australian employment figures, and latest weak business activity in the country, limits chances of a positive surprise. During the weekend, China released its Trade Balance that show a record trade surplus of $60 billion as imports plunged on falling commodity price weak domestic demand. The news will likely affect positively the Australian currency, but the effect should be temporal, as selling rallies is still favored."
"Technically, the 4 hours chart shows that the pair found buyers around the 38.2% retracement of last week rally around 0.7775, the immediate support. In the same chart, the price hovers around a mild bullish 20 SMA whilst momentum indicators bounced from its mid-line, which along with Chinese data, suggest the pair may see some early gains at the weekly opening. The pair however, will need to advance beyond the mentioned weekly high to gain a more constructive outlook for this Monday. The critical support remains at 0.7735, as a break below it will turn the risk towards the downside."
Key quotes:
"The pair however, set a fresh multi-year low of 0.7625, level not seen since April 2009, following the surprise decision of the RBA to cut rates to record lows of 2.25%. The pair bounced up to 0.785 before retracing to pre-RBA's decision level, neutralizing the effect of the latest Governors' Stevens decision."
"For this week, the pair will have to deal with Australian employment figures, and latest weak business activity in the country, limits chances of a positive surprise. During the weekend, China released its Trade Balance that show a record trade surplus of $60 billion as imports plunged on falling commodity price weak domestic demand. The news will likely affect positively the Australian currency, but the effect should be temporal, as selling rallies is still favored."
"Technically, the 4 hours chart shows that the pair found buyers around the 38.2% retracement of last week rally around 0.7775, the immediate support. In the same chart, the price hovers around a mild bullish 20 SMA whilst momentum indicators bounced from its mid-line, which along with Chinese data, suggest the pair may see some early gains at the weekly opening. The pair however, will need to advance beyond the mentioned weekly high to gain a more constructive outlook for this Monday. The critical support remains at 0.7735, as a break below it will turn the risk towards the downside."