24 Apr 2014
AUD/USD flirting with 0.9300
FXStreet (Edinburgh) - The Aussie dollar is inching higher on Thursday, lifting the AUD/USD to the vicinity of 0.9300 the figure in an attempt to recover some ground after yesterday’s sharp sell-off.
AUD/USD hinging on risk, carry trade
There won’t be any events or data releases in Oz for the rest of the week, leaving the AUD to the mercy of the risk trends. The return of the carry trade could well also see the Aussie escalate further levels beyond the 0.9300 handle after benign CPI figures dragged spot near 0.9270 on Wednesday. “Although the pair may experience some near term capitulation, the Aussie’s prospects may not be derailed if the 0.9245/50 area is not breached on a sustained basis multi-session. Meanwhile, a heavy AUD-NZD (on the back of the RBNZ rate hike) may also cap the AUD-USD in the short term’, noted Emmanuel Ng, FX Strategist at OCBC Bank.
AUD/USD levels to watch
At the moment the pair is losing 0.03% at 0.9288 with the next support at 0.9197 (daily cloud top) ahead of 0.9163 (200-d MA) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9300 (psychological level) would expose 0.9310 (high Apr.1) and then 0.9387 (high Apr.8).
AUD/USD hinging on risk, carry trade
There won’t be any events or data releases in Oz for the rest of the week, leaving the AUD to the mercy of the risk trends. The return of the carry trade could well also see the Aussie escalate further levels beyond the 0.9300 handle after benign CPI figures dragged spot near 0.9270 on Wednesday. “Although the pair may experience some near term capitulation, the Aussie’s prospects may not be derailed if the 0.9245/50 area is not breached on a sustained basis multi-session. Meanwhile, a heavy AUD-NZD (on the back of the RBNZ rate hike) may also cap the AUD-USD in the short term’, noted Emmanuel Ng, FX Strategist at OCBC Bank.
AUD/USD levels to watch
At the moment the pair is losing 0.03% at 0.9288 with the next support at 0.9197 (daily cloud top) ahead of 0.9163 (200-d MA) and then 0.9155 (low Mar.26). On the flip side, a breakout of 0.9300 (psychological level) would expose 0.9310 (high Apr.1) and then 0.9387 (high Apr.8).