2 Sep 2013
AUD/USD prints fresh highs at 0.8970 on meteoric rise
FXstreet.com (Chicago) - AUD/USD soared on Chinese manufacturing data after small and short-lived reversal on Monday’s session. The pair has advanced over 40 pips within a few hours and may be at the verge of major reversal move.
China expanding, Aussie riding along, Syrian concerns fading away
A plethora of data has been published in Australia so far with the TD securities inflation (MoM) for August at 0.1% vs. past 0.5% and YoY’s at 2.1% vs. prior 2.7%. The AiG performance of Mfg index for August was 46.4 vs. past 42.0. Building permits (MoM) for July were 10.8% vs. past -6.9% and estimates at 4.1% while yearly data was 28.3% vs. past -13%. Company gross operating profits (QoQ) for the second quarter of the year were -0.8% vs. past 3.0% and projections at 1.1%. In China, NBS manufacturing PMI was 51.0 vs. past 50.3 and expected 50.6, lifting the Aussie higher as the country is Australia’s largest trading partner while the HSBC manufacturing PMI was 50.1 vs. past 47.7 and estimates at 50.2. Finally, the UN declared it needed at least 2 weeks to complete weapons inspection, calming down market participants who had also digested the UK’s back down vote against military strike in Syria.
AUD/USD Technical Levels – start of major reversal move?
Price action reveals heavy buying after runaway gap at opening and small short-lived retracement that dragged the pair to 0.8924 session lows. Fueled by Chinese data, the pair reached 0.8970 session highs and trades at 0.8966 between supports at 0.8941 (August 30th highs), 0.8920 (August 27th lows) ahead of 0.89 (August 29th lows) and resistances at 0.8976 (August 29th highs), 0.90 (August 27th highs) followed by 0.9024 (August 22nd highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and is offered above the EMA20.
China expanding, Aussie riding along, Syrian concerns fading away
A plethora of data has been published in Australia so far with the TD securities inflation (MoM) for August at 0.1% vs. past 0.5% and YoY’s at 2.1% vs. prior 2.7%. The AiG performance of Mfg index for August was 46.4 vs. past 42.0. Building permits (MoM) for July were 10.8% vs. past -6.9% and estimates at 4.1% while yearly data was 28.3% vs. past -13%. Company gross operating profits (QoQ) for the second quarter of the year were -0.8% vs. past 3.0% and projections at 1.1%. In China, NBS manufacturing PMI was 51.0 vs. past 50.3 and expected 50.6, lifting the Aussie higher as the country is Australia’s largest trading partner while the HSBC manufacturing PMI was 50.1 vs. past 47.7 and estimates at 50.2. Finally, the UN declared it needed at least 2 weeks to complete weapons inspection, calming down market participants who had also digested the UK’s back down vote against military strike in Syria.
AUD/USD Technical Levels – start of major reversal move?
Price action reveals heavy buying after runaway gap at opening and small short-lived retracement that dragged the pair to 0.8924 session lows. Fueled by Chinese data, the pair reached 0.8970 session highs and trades at 0.8966 between supports at 0.8941 (August 30th highs), 0.8920 (August 27th lows) ahead of 0.89 (August 29th lows) and resistances at 0.8976 (August 29th highs), 0.90 (August 27th highs) followed by 0.9024 (August 22nd highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and is offered above the EMA20.