8 Jul 2014
AUD/USD clinches to 0.9400
FXStreet (Edinburgh) - The bid tone around the Aussie dollar remains intact at the beginning of the week, now lifting the AUD/USD back above the 0.9400 key barrier.
AUD/USD extend the correction higher
Renewed buying interest is helping the AUD retrace part of last week’s deep sell-off to sub-0.9330 levels, pushing spot to advance for the second consecutive session so far. In the same direction, positive confidence gauges in Oz are also collaborating with the bullish sentiment. “While the recent softening in fears about the pace of growth in the Chinese economy is supportive for the AUD, we expect these concerns to resume in the months ahead and anticipate a weaker outlook for the AUD/USD medium-term. We see risk that AUD/USD could start pushing down towards the 0.80 level by the end of this year, dependent on the news from China”, assessed Jane Foley, Senior Currency Strategist at Rabobank.
AUD/USD key levels
As of writing the pair is advancing 0.37% at 0.9407 with the next resistance at 0.9443 (high Jul.3) followed by 0.9499 (high Jul.2) and finally 0.9505 (high Jul.1). On the flip side, a breakdown of 0.9344 (low Jul.4) would expose 0.9341 (50-d MA) and then 0.9327 (low Jul.3).
AUD/USD extend the correction higher
Renewed buying interest is helping the AUD retrace part of last week’s deep sell-off to sub-0.9330 levels, pushing spot to advance for the second consecutive session so far. In the same direction, positive confidence gauges in Oz are also collaborating with the bullish sentiment. “While the recent softening in fears about the pace of growth in the Chinese economy is supportive for the AUD, we expect these concerns to resume in the months ahead and anticipate a weaker outlook for the AUD/USD medium-term. We see risk that AUD/USD could start pushing down towards the 0.80 level by the end of this year, dependent on the news from China”, assessed Jane Foley, Senior Currency Strategist at Rabobank.
AUD/USD key levels
As of writing the pair is advancing 0.37% at 0.9407 with the next resistance at 0.9443 (high Jul.3) followed by 0.9499 (high Jul.2) and finally 0.9505 (high Jul.1). On the flip side, a breakdown of 0.9344 (low Jul.4) would expose 0.9341 (50-d MA) and then 0.9327 (low Jul.3).