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3 Jun 2014
AUD/USD: Directionless after 30 pips swings
FXStreet (Bali) - AUD/USD has been swinging in both directions in the last 30 minutes, following economic data published out of Australian and China.
Firstly, the Aussie found bids off 0.9227 session low on the heels of an improved trade account deficit, which should contribute to a better GDP tomorrow, with Australian retail sales unchanged at +0.2%, thus playing a small role on price activity.
Secondly, the lower-than-expected Chinese HSBC PMI, off 0.3 points to 49.4 from its flash reading at 49.7, resulted in most of the advantage being eroded ahead of the RBA, with the rate now resting just 10 pips above the day low.
The focus is now completely shifted to the RBA monetary policy statement, with talk doing the rounds about a possible return to jawboning tactics by the central bank.
If downside momentum extends, according to Jim Langlands, Founder at FXCharts: "A break below 0.9235 would again head back into the strong support in the 0.9200/10 area which has recently held well and could do so again given the mixed nature of the momentum indicators. A break would have rather bearish implications, invalidating the reverse head/shoulders by heading back below the neckline and would suggest a run towards 0.9175, where the 200 DMA lies."
Firstly, the Aussie found bids off 0.9227 session low on the heels of an improved trade account deficit, which should contribute to a better GDP tomorrow, with Australian retail sales unchanged at +0.2%, thus playing a small role on price activity.
Secondly, the lower-than-expected Chinese HSBC PMI, off 0.3 points to 49.4 from its flash reading at 49.7, resulted in most of the advantage being eroded ahead of the RBA, with the rate now resting just 10 pips above the day low.
The focus is now completely shifted to the RBA monetary policy statement, with talk doing the rounds about a possible return to jawboning tactics by the central bank.
If downside momentum extends, according to Jim Langlands, Founder at FXCharts: "A break below 0.9235 would again head back into the strong support in the 0.9200/10 area which has recently held well and could do so again given the mixed nature of the momentum indicators. A break would have rather bearish implications, invalidating the reverse head/shoulders by heading back below the neckline and would suggest a run towards 0.9175, where the 200 DMA lies."