17 Oct 2013
AUD/USD downwards despite a breach of the debt ceiling averted
FXstreet.com (Athens) – The AUD/USD was initially spiked on 0.9570 in the kick off of the Sydney’s trading session - as the bill finally passed the US House of Representatives - but soon pared all of its gains and returned to its prior levels.
AUD/USD downwards amidst no euphoric response on US budget deal
The AUD/USD initially spiked on the fact that finally even at the 11th hour the Washington reached an agreement to raise the debt-ceiling and to reopen the government even to a very short – extended period. Briefly, the debt ceiling decided to be raised till the 7th of February while the US government will reopen through to 15th of January. However, it seemed that market participants had already “priced in a last-minute deal”, therefore the whole trading behavior was mostly shaped according to the well known “buy the rumor – sell the fact” trend shift. Thus, as soon as the “Aussie” printed new fresh highs as of the 18th of June of 2013, it soon retreated to its prior levels, while now is trading downwards running out of further uptrend momentum. Traders interested in the cross should bear in mind that RBA Governor Stevens is speaking on Friday as well as that because of the US government reopening next week we might see a flurry of US data.
Technical Aspects on AUD/USD
Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”
AUD/USD downwards amidst no euphoric response on US budget deal
The AUD/USD initially spiked on the fact that finally even at the 11th hour the Washington reached an agreement to raise the debt-ceiling and to reopen the government even to a very short – extended period. Briefly, the debt ceiling decided to be raised till the 7th of February while the US government will reopen through to 15th of January. However, it seemed that market participants had already “priced in a last-minute deal”, therefore the whole trading behavior was mostly shaped according to the well known “buy the rumor – sell the fact” trend shift. Thus, as soon as the “Aussie” printed new fresh highs as of the 18th of June of 2013, it soon retreated to its prior levels, while now is trading downwards running out of further uptrend momentum. Traders interested in the cross should bear in mind that RBA Governor Stevens is speaking on Friday as well as that because of the US government reopening next week we might see a flurry of US data.
Technical Aspects on AUD/USD
Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”