AUD/USD extends the upside

FXstreet.com (Edinburgh) -Choppy week for the Aussie dollar so far, driving the AUD/USD to briefly pierce the key 0.9300 handle on Tuesday just to test weekly lows around 0.9130 soon afterwards.

AUD/USD capped by 0.9300

The 0.9300 level continues to cap any upside attempt of the pair during July, although the prevailing bias continues to be tilted to the bearish side. “Pricing for the RBA’s Aug meeting is stable at -18bp/71%, consistent with Westpac’s view. Since the low CPI data, some forecasters have reluctantly joined Westpac in calling for an August cut. Political intrigue will heighten this weekend, with many pundits expecting PM Rudd to call a 31 August election”, commented Sean Callow, Strategist at Westpac.

AUD/USD critical levels

The pair is now up 0.16% at 0.9260 facing the next resistance at 0.9282 (high Jul.25) followed by 0.9320 (high Jul.24) and then 0.9340 (high Jun.26). On the downside, a breach of 0.9196 (MA10d) would open the door to 0.9179 (MA21d) and then 0.9147 (low Jun.24).

EUR/GBP confined to narrow ranges

EUR/GBP has ben confined to a narrow range due to dollar activity.
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