3 Sep 2013
AUD/USD regains strength; back above 0.9050
FXstreet.com (Chicago) - AUD/USD retraced from earlier highs at 0.9074 for a short-lived couple of hours. The upward trend line is extended as lows are higher ahead of the American session closing.
Weakened Aussie
Earlier in Australia, the RBA decided to maintain the interest rate at 2.5%. Retail sales had been worse-than-expected with 0.1% results compared to expectations at 0.4% and past 0% results. Moreover, the trade balance was also weaker than projected at -9.46B vs. past -8.7B. Despite the news, market participants extended gains and bullish channel on potential reversal week. In the US, manufacturing data was better-than-expected although the Syrian concern remains lingering in investors’ psyches.
AUD/USD Technical Levels
Price action reveals the formation of a flag prior to a strong bullish rally that lost momentum once it hit 0.9070 highs (double tops from last August 26th peaks). The pair retraced 38.2% (Fibonacci level) from daily highs since the start of today’s journey. Offered at 0.9053, the pair oscillates between supports at 0.9040 (August 22nd highs), 0.9024 (August 20th lows) ahead of 0.8996 (August 27th highs) and resistances at 0.9069 (double tops, session highs and August 26th highs), 0.9093 (August 20th highs) followed by 0.9115 (August 14th lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis. Volume seems to remain lower compared to previous peak although the price pushes higher on bullish pressure.
Weakened Aussie
Earlier in Australia, the RBA decided to maintain the interest rate at 2.5%. Retail sales had been worse-than-expected with 0.1% results compared to expectations at 0.4% and past 0% results. Moreover, the trade balance was also weaker than projected at -9.46B vs. past -8.7B. Despite the news, market participants extended gains and bullish channel on potential reversal week. In the US, manufacturing data was better-than-expected although the Syrian concern remains lingering in investors’ psyches.
AUD/USD Technical Levels
Price action reveals the formation of a flag prior to a strong bullish rally that lost momentum once it hit 0.9070 highs (double tops from last August 26th peaks). The pair retraced 38.2% (Fibonacci level) from daily highs since the start of today’s journey. Offered at 0.9053, the pair oscillates between supports at 0.9040 (August 22nd highs), 0.9024 (August 20th lows) ahead of 0.8996 (August 27th highs) and resistances at 0.9069 (double tops, session highs and August 26th highs), 0.9093 (August 20th highs) followed by 0.9115 (August 14th lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis. Volume seems to remain lower compared to previous peak although the price pushes higher on bullish pressure.