7 May 2014
Aussie should remain well supported in Asia - Arab Bank
FXStreet (Bali) - According to David Scutt, Treasury Dealer at Arab Bank, the AUD/USD should continue to find solid buying interest on dips.
Key Quotes
Pushing aside contracting service sector activity, consumer confidence at GFC lows, soft trade figures and neutral RBA monetary policy statement, the AUDUSD has leapt higher overnight with USD weakness before FOMC Chair Janet Yellen’s testimony this evening pushing the pair to a high of .9368 in overnight trade.
While there is domestic retail sales data released later on today, a noted high-volatility event, and the risk the move could reverse given everyone is expecting another dovish showing from Yellen, a ‘sell the fact’ moment, it’s likely that the Aussie will remain well supported over the course of Asian trade. Support is found at .9350, .9335 and .9317 with resistance located at .9368, .9377, .9391 and again above .9400.
The domestic data deluge continues this morning with the release of retail sales, both the Q1 inflation-adjusted and March figures (1130), along with the AIG-HIA performance of construction index for April (0930).
As you would expect given its importance to domestic economic growth, all eyes will be on the retail sales figures with economists expecting Q1 turnover to have risen +1.6%, up from +0.9% in Q4 2013, with March sales expected to log an increase of 0.4%, up from 0.2% in February.
If March sales do indeed advance, it’ll be the 11th-consecutive monthly increase, the strongest run of gains since November 2005 to March 2007.
Key Quotes
Pushing aside contracting service sector activity, consumer confidence at GFC lows, soft trade figures and neutral RBA monetary policy statement, the AUDUSD has leapt higher overnight with USD weakness before FOMC Chair Janet Yellen’s testimony this evening pushing the pair to a high of .9368 in overnight trade.
While there is domestic retail sales data released later on today, a noted high-volatility event, and the risk the move could reverse given everyone is expecting another dovish showing from Yellen, a ‘sell the fact’ moment, it’s likely that the Aussie will remain well supported over the course of Asian trade. Support is found at .9350, .9335 and .9317 with resistance located at .9368, .9377, .9391 and again above .9400.
The domestic data deluge continues this morning with the release of retail sales, both the Q1 inflation-adjusted and March figures (1130), along with the AIG-HIA performance of construction index for April (0930).
As you would expect given its importance to domestic economic growth, all eyes will be on the retail sales figures with economists expecting Q1 turnover to have risen +1.6%, up from +0.9% in Q4 2013, with March sales expected to log an increase of 0.4%, up from 0.2% in February.
If March sales do indeed advance, it’ll be the 11th-consecutive monthly increase, the strongest run of gains since November 2005 to March 2007.