14 Apr 2014
AUD/USD capped by 0.9400
FXStreet (Edinburgh) - The Australian dollar is posting meager gains on Monday, taking the AUD/USD to the 0.9390/85 area.
AUD/USD lifted by EUR/AUD selling
Dovish comments from ECB’s Mario Draghi over the weekend prompted investors to sell the EUR/AUD, giving AUD/USD extra wings beyond the 0.9400 handle although the spike run out of steam afterwards. In the data front, traders would pay attention to tomorrow’s RBA minutes ahead of key GDP data from China on Wednesday. “The head and shoulders bottom we have previously noted, projects to about $0.9500. The Australian dollar reached $0.9460 on April 10, before giving up a cent on profit-taking ahead of the weekend. That pullback met a minimum retracement objective of the bounce from the test on $0.9200 on April 3. Provided this area holds, the bulls may be emboldened”, commented the BBH Global Currency Strategy Team.
AUD/USD key levels
The pair is now losing 0.09% at 0.9389 with the next support at 0.9362 (low Apr.11) ahead of 0.9355 (low Apr.9) and finally 0.9300 (psychological level). On the flip side, a breakout of 0.9427 (high Apr.11) would open the door to 0.9461 (high Apr.10) and then 0.9500 (psychological level).
AUD/USD lifted by EUR/AUD selling
Dovish comments from ECB’s Mario Draghi over the weekend prompted investors to sell the EUR/AUD, giving AUD/USD extra wings beyond the 0.9400 handle although the spike run out of steam afterwards. In the data front, traders would pay attention to tomorrow’s RBA minutes ahead of key GDP data from China on Wednesday. “The head and shoulders bottom we have previously noted, projects to about $0.9500. The Australian dollar reached $0.9460 on April 10, before giving up a cent on profit-taking ahead of the weekend. That pullback met a minimum retracement objective of the bounce from the test on $0.9200 on April 3. Provided this area holds, the bulls may be emboldened”, commented the BBH Global Currency Strategy Team.
AUD/USD key levels
The pair is now losing 0.09% at 0.9389 with the next support at 0.9362 (low Apr.11) ahead of 0.9355 (low Apr.9) and finally 0.9300 (psychological level). On the flip side, a breakout of 0.9427 (high Apr.11) would open the door to 0.9461 (high Apr.10) and then 0.9500 (psychological level).