11 Nov 2013
AUD/USD sideways after solid Australian home data
FXstreet.com (Athens) – The AUD/USD is trading amidst a very tight area of 0.9376 – 0.9383, after an immense volatile session on Friday and ahead of bank holidays in US, Europe.
AUD/USD moves sidelines ahead of partial holidays in US, Europe
The AUD/USD started off the opening trading session in Wellington at 0.9380 and has been trading during the Asian trading session amidst a congestion area of 0.9366-0.9388. Traders might attributed the sideways pattern trend shift of the cross, to a couple of reasons; first of all, ahead of the bank holidays in US and Europe, it might be plausible that the pair prefers to keep it tight after the immense volatility that was caught on Friday due to the sharp rise of the NFP data. As an immediate consequence the Aussie fell roughly 0.75% on a daily basis on Friday, therefore today it is more than probable that the Aussie tries to find a balance ahead of a very light calendar day. What’s more, earlier the home loans for September in Australia released 4.4% on a monthly basis (3.3% consensus), with a 5.2% gain in the investment lending data. While the Australian housing data show that the housing market clearly remains solid, market participants should also bear in mind that on Friday RBA downgraded significantly its growth forecast for Australia from (2.5% - 3.5%) to (2% - 3%).
Technical Aspects on the AUD/USD
Upwards the cross should initially overcome the handle of the 0.9409 level (38.2% Fibonacci of the 0.8850 – 0.9760 uptrend movement) and then the 50-EMA (0.9425), in order to trend higher near the 0.9600 zone. Downwards, there is a strong support zone which lays at the 0.9298 key support area (50% Fibonacci of the uptrend movement of the 0.9280 – 0.9760 area), which is also a psychological support level. In case the above depicted level is breached, the cross might get into a strong bearish reversal trend shift
AUD/USD moves sidelines ahead of partial holidays in US, Europe
The AUD/USD started off the opening trading session in Wellington at 0.9380 and has been trading during the Asian trading session amidst a congestion area of 0.9366-0.9388. Traders might attributed the sideways pattern trend shift of the cross, to a couple of reasons; first of all, ahead of the bank holidays in US and Europe, it might be plausible that the pair prefers to keep it tight after the immense volatility that was caught on Friday due to the sharp rise of the NFP data. As an immediate consequence the Aussie fell roughly 0.75% on a daily basis on Friday, therefore today it is more than probable that the Aussie tries to find a balance ahead of a very light calendar day. What’s more, earlier the home loans for September in Australia released 4.4% on a monthly basis (3.3% consensus), with a 5.2% gain in the investment lending data. While the Australian housing data show that the housing market clearly remains solid, market participants should also bear in mind that on Friday RBA downgraded significantly its growth forecast for Australia from (2.5% - 3.5%) to (2% - 3%).
Technical Aspects on the AUD/USD
Upwards the cross should initially overcome the handle of the 0.9409 level (38.2% Fibonacci of the 0.8850 – 0.9760 uptrend movement) and then the 50-EMA (0.9425), in order to trend higher near the 0.9600 zone. Downwards, there is a strong support zone which lays at the 0.9298 key support area (50% Fibonacci of the uptrend movement of the 0.9280 – 0.9760 area), which is also a psychological support level. In case the above depicted level is breached, the cross might get into a strong bearish reversal trend shift