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4 Jun 2014
AUD/USD erases all gains post Aus GDP
FXStreet (Bali) - AUD/USD lost most of its advantage following the GDP-inspired spike to 0.9297 to currently trade at 0.9263, near pre-release levels.
Despite the better-than-expected GDP headline, which came at +1.1% for Q1 vs 1% expected, offers ahead of 0.93 could not be absorbed, ensuring an extension of the daily range between 0.9325 and 0.9210. Not helping the case for breaks if the fact of options expiring at 0.92 and 0.93 today at the NY cut, with amounts in the order of 310m and 160m respectively.
Prospects for a decisive breakout on either side are not looking that encouraging if one takes as a guide potential policy divergences between the RBA and the Fed, with both central banks remaining 'neutral' and cautious on their communication strategies, thus leaving traders still clueless as to the potential timing of rate hikes.
Despite the better-than-expected GDP headline, which came at +1.1% for Q1 vs 1% expected, offers ahead of 0.93 could not be absorbed, ensuring an extension of the daily range between 0.9325 and 0.9210. Not helping the case for breaks if the fact of options expiring at 0.92 and 0.93 today at the NY cut, with amounts in the order of 310m and 160m respectively.
Prospects for a decisive breakout on either side are not looking that encouraging if one takes as a guide potential policy divergences between the RBA and the Fed, with both central banks remaining 'neutral' and cautious on their communication strategies, thus leaving traders still clueless as to the potential timing of rate hikes.