27 Sep 2013
AUD/USD continues with its downside bias. A correction or a new thrust wave lower?
FXstreet.com (Barcelona) - The AUD/USD cross dropped modestly again Thursday as the influence of the global “risk off” trade was replaced by sudden DXY relative strength.
Strength of the DXY overstated by Yen and euro influences, but the AUD/USD fell nonetheless
The severe weakness in the Yen and the euro Thursday caused a sudden and strong rally in the DXY. The influence of the Yen and euro being noted, the general DXY strength transferred to the AUD/USD and sent the cross lower despite mixed overall data out of the US.
Friday's trading in AUD/USD will be driven by the US data flow which will include personal income, consumption and spending data, the University of Michigan Consumer Confidence Survey as well as multiple “Fed Head” speeches.
Technical outlook for AUD/USD
The AUD/USD has room to fall as “correction support” does not come into play until 0.9282. AUD/USD bulls will need to hold firm at that level if they are to have a chance at victory short-term. The next target on the downside if 0.9282 fails is 0.9253. Resistance comes into play at 0.9456.
Strength of the DXY overstated by Yen and euro influences, but the AUD/USD fell nonetheless
The severe weakness in the Yen and the euro Thursday caused a sudden and strong rally in the DXY. The influence of the Yen and euro being noted, the general DXY strength transferred to the AUD/USD and sent the cross lower despite mixed overall data out of the US.
Friday's trading in AUD/USD will be driven by the US data flow which will include personal income, consumption and spending data, the University of Michigan Consumer Confidence Survey as well as multiple “Fed Head” speeches.
Technical outlook for AUD/USD
The AUD/USD has room to fall as “correction support” does not come into play until 0.9282. AUD/USD bulls will need to hold firm at that level if they are to have a chance at victory short-term. The next target on the downside if 0.9282 fails is 0.9253. Resistance comes into play at 0.9456.