9 Apr 2014
AUD/USD: Pullback to be limited in nature - Arab Bank
FXStreet (Bali) - In view of David Scutt, Treasury Dealer at Arab Bank, despite the sharp rise in AUD/USD, any retracement from current hefty levels is likely to be limited in nature ahead of Thursday's Aus jobs.
Key Quotes
"Helped by broad-based US weakness, higher commodity prices and further talk of more Chinese stimulus, the AUDUSD took off like a rocket overnight, hitting a high of .9360, the highest level seen since November 20 last year. While profit-taking after such a strong move is usually inevitable, with markets now eyeing off a swathe of Chinese data releases in the week ahead, again something we believe will be perceived as bullish no matter how they print, it’s likely that any pullback in the pair today will be very limited in nature."
"Support is found at .9339, .9320 and again at .9308 with resistance kicking in at .9366, .9380, .9400 and beyond that, .9448."
"Local data out today includes the Westpac-MI consumer survey for April (10.30am) along with home loan approvals data for February (11.30am). While both are secondary figures, given sentiment dipped below 100 in March, a level that suggests consumers are now net pessimistic, along with increased focus on the housing market at present, particularly the increase in investor activity of late, we expect that both releases will have greater market impact than what they are traditionally known for today."
Key Quotes
"Helped by broad-based US weakness, higher commodity prices and further talk of more Chinese stimulus, the AUDUSD took off like a rocket overnight, hitting a high of .9360, the highest level seen since November 20 last year. While profit-taking after such a strong move is usually inevitable, with markets now eyeing off a swathe of Chinese data releases in the week ahead, again something we believe will be perceived as bullish no matter how they print, it’s likely that any pullback in the pair today will be very limited in nature."
"Support is found at .9339, .9320 and again at .9308 with resistance kicking in at .9366, .9380, .9400 and beyond that, .9448."
"Local data out today includes the Westpac-MI consumer survey for April (10.30am) along with home loan approvals data for February (11.30am). While both are secondary figures, given sentiment dipped below 100 in March, a level that suggests consumers are now net pessimistic, along with increased focus on the housing market at present, particularly the increase in investor activity of late, we expect that both releases will have greater market impact than what they are traditionally known for today."