30 Aug 2013
AUD/USD finishes lower after volatile session; opens lower in Friday session
FXstreet.com (Barcelona) - The AUD/USD oscillated Thursday responding to a frenetic combination of Syria news and economic data. The net result was a lower close Thursday – which has turned into even more weakness early in Friday’s session.
Strong US data put September tapering back in play – perhaps Syria will hold that off
The AUD/USD netted out a loss on Thursday as the US Dollar saw major inflows as a result primarily of better-than-expected GDP revisions for Q2, better weekly jobless claims vs. a week ago and decent personal consumption expenditure numbers. The DXY had already been rallying off of varying Syria news, but the data just poured gasoline on the upside fire. The better data seemingly reversed a recent trend of poor data points and effectively brought the possibility of Fed tapering back to the front burner - along with Syria.
That downside momentum for AUD/USD has carried into the early-Friday session thus far. This session, however, will not only bring us another block of US data points (personal income, spending and consumption numbers, Chicago PMI data and the University of Michigan Consumer Sentiment Index), but Australian Private Sector Credit as well.
Technical outlook for AUD/USD
Technicians say that the AUD/USD appears to be destined for a run down to 0.8805 and possibly even 0.8773 (both Fibonacci projections) before this macro wave lower is done. Shorter-term support comes in at 0.8891 – Wednesday’s low. Resistance – which those technicians say should be sold into – comes in at 0.8933 and is backed up by 0.8953.
Strong US data put September tapering back in play – perhaps Syria will hold that off
The AUD/USD netted out a loss on Thursday as the US Dollar saw major inflows as a result primarily of better-than-expected GDP revisions for Q2, better weekly jobless claims vs. a week ago and decent personal consumption expenditure numbers. The DXY had already been rallying off of varying Syria news, but the data just poured gasoline on the upside fire. The better data seemingly reversed a recent trend of poor data points and effectively brought the possibility of Fed tapering back to the front burner - along with Syria.
That downside momentum for AUD/USD has carried into the early-Friday session thus far. This session, however, will not only bring us another block of US data points (personal income, spending and consumption numbers, Chicago PMI data and the University of Michigan Consumer Sentiment Index), but Australian Private Sector Credit as well.
Technical outlook for AUD/USD
Technicians say that the AUD/USD appears to be destined for a run down to 0.8805 and possibly even 0.8773 (both Fibonacci projections) before this macro wave lower is done. Shorter-term support comes in at 0.8891 – Wednesday’s low. Resistance – which those technicians say should be sold into – comes in at 0.8933 and is backed up by 0.8953.