2 Sep 2013
AUD/USD extends the upside, focus on 0.9000
FXstreet.com (Edinburgh) -The Aussie dollar opened the week in a firmer tone, lifting the AUD/USD to the vicinity of the psychological resistance at 0.9000.
AUD/USD boosted by China, eyes on RBA
Better results from the Chinese Manufacturing PMI are giving extra impulse to the risk-associated assets on Monday, helping both the NZD and the AUD. The somewhat calmer situation in the Middle East is collaborating with the upside either, keeping the bid tone in the pair. In light of tomorrow’s RBA meeting, Mansoor Mohi-uddin, Director of FX Strategy at UBS commented, “Though the central bank is set to keep interest rates unchanged at 2.50%, we think sentiment will remain bearish on the Australian dollar… the RBA remains keen to see the currency weaken to help rebalance the economy. That suggests that if the Australian dollar does not weaken, the RBA may be willing to act again to lower interest rates in future… we expect the Australian dollar to remain a sell on rallies and instead trade in a lower 0.85-0.90 range against the US dollar over the next few months”. Confirming the positive start of the week for the pair, Australian Building Permits expanded at a whopping annual pace of 28.3% during July, leaving behind the previous 11.8% contraction.
AUD/USD levels to watch
The pair is now advancing 0.35% at 0.8975 with the next hurdle at 0.8985 (high Aug.28) followed by 0.9028 (MA10d). On the flip side, a breakdown of 0.8891 (low Aug.28) would expose 0.8848 (2013 low Aug.5) and then 0.8846 (low Aug.27 2010).
AUD/USD boosted by China, eyes on RBA
Better results from the Chinese Manufacturing PMI are giving extra impulse to the risk-associated assets on Monday, helping both the NZD and the AUD. The somewhat calmer situation in the Middle East is collaborating with the upside either, keeping the bid tone in the pair. In light of tomorrow’s RBA meeting, Mansoor Mohi-uddin, Director of FX Strategy at UBS commented, “Though the central bank is set to keep interest rates unchanged at 2.50%, we think sentiment will remain bearish on the Australian dollar… the RBA remains keen to see the currency weaken to help rebalance the economy. That suggests that if the Australian dollar does not weaken, the RBA may be willing to act again to lower interest rates in future… we expect the Australian dollar to remain a sell on rallies and instead trade in a lower 0.85-0.90 range against the US dollar over the next few months”. Confirming the positive start of the week for the pair, Australian Building Permits expanded at a whopping annual pace of 28.3% during July, leaving behind the previous 11.8% contraction.
AUD/USD levels to watch
The pair is now advancing 0.35% at 0.8975 with the next hurdle at 0.8985 (high Aug.28) followed by 0.9028 (MA10d). On the flip side, a breakdown of 0.8891 (low Aug.28) would expose 0.8848 (2013 low Aug.5) and then 0.8846 (low Aug.27 2010).