1 Dec 2014
AUD/USD trading back below 0.85 psychological handle
FXStreet (Guatemala) - AUD/USD is trading at 0.8487, down -0.28% on the day, having posted a daily high at 0.8529 and low at 0.8417.
AUD/USD has been climbing back up to the 0.85 handle and recouping heavy losses to the greenback advancing across the board and heavily so vs the commodity currencies of late. The turn around comes with a higher gold price that bounced to erase all of the losses from the closing session of last week.
The turnaround in the cross was trading at highs, 0.8527 and broke 0.8507 as the first retracement of the 0.8795 – 0.8515 November 16th sell off. 0.8560/65, or 38.2% of the same sell off, could be further resistance should the offers get squeezed out higher again. However, the US ISM manufacturing came out surprising to the upside, which bought supply back into the mix and takes the Aussie back below the hourly 200 SMA at 0.8506 and trades below the psychological 0.85 handle again, supported at 0.8480 currently.
We now await the RBA’s interest rate decision and statement and while it isn’t expected to bring us anything new for the yearend, we might here notes in respect to the price of the Aussie, especially, one might think, in light of recent volatility.
In respect to seasonal price action, the Aussie might find some relief in weakness in the Greenback towards the end of the month as so often is the case, the US dollar tends to do well for the first couple of weeks of December before the corporate repatriation occurs at the end of the year. Looking at daily charts, December has often been a positive month for the Aussie.
AUD/USD has been climbing back up to the 0.85 handle and recouping heavy losses to the greenback advancing across the board and heavily so vs the commodity currencies of late. The turn around comes with a higher gold price that bounced to erase all of the losses from the closing session of last week.
The turnaround in the cross was trading at highs, 0.8527 and broke 0.8507 as the first retracement of the 0.8795 – 0.8515 November 16th sell off. 0.8560/65, or 38.2% of the same sell off, could be further resistance should the offers get squeezed out higher again. However, the US ISM manufacturing came out surprising to the upside, which bought supply back into the mix and takes the Aussie back below the hourly 200 SMA at 0.8506 and trades below the psychological 0.85 handle again, supported at 0.8480 currently.
We now await the RBA’s interest rate decision and statement and while it isn’t expected to bring us anything new for the yearend, we might here notes in respect to the price of the Aussie, especially, one might think, in light of recent volatility.
In respect to seasonal price action, the Aussie might find some relief in weakness in the Greenback towards the end of the month as so often is the case, the US dollar tends to do well for the first couple of weeks of December before the corporate repatriation occurs at the end of the year. Looking at daily charts, December has often been a positive month for the Aussie.