24 Sep 2013
Flash: AUD/USD breaks 0.94; 0.9370 next target
FXstreet.com (Barcelona) - The Australian Dollar just broke the 0.94 round number at the early stages of the Tokyo open, further retracing the HSBC China PMI-led recovery off a down gap at 0.9365 from Monday's weekly open.
AUD/USD technical outlook
John Noonan, Head of IFR Markets, notes option and Japanese accounts sell, noting "talk of a large 0.9400 option strike that might be drawing price action." In view of Noonan, a break below 0.9400 sees 10-day MA at 0.9370 being exposed.
Since peaking above 0.95 on Sept 19, the AUD/USD has failed to keep on the pressure near recent highs to instead build a double top at 0.9450/55, an area which is likely to act as key short term resistance this week.
Taper chatter in Oct pauses USD sell-off
One of the reasons keeping the sellers fighting back is the fact that the Fed members have been recently telegraphing a possible taper in October, thus why the USD is showing a combatant spirit.
As Marc Chandler, Global Head of Currency Strategy at BBH, notes: "Bullard's comments before the weekend that it was a close decision and tapering was possible in October if the economic data was better, keeps the market on edge."
AUD/USD technical outlook
John Noonan, Head of IFR Markets, notes option and Japanese accounts sell, noting "talk of a large 0.9400 option strike that might be drawing price action." In view of Noonan, a break below 0.9400 sees 10-day MA at 0.9370 being exposed.
Since peaking above 0.95 on Sept 19, the AUD/USD has failed to keep on the pressure near recent highs to instead build a double top at 0.9450/55, an area which is likely to act as key short term resistance this week.
Taper chatter in Oct pauses USD sell-off
One of the reasons keeping the sellers fighting back is the fact that the Fed members have been recently telegraphing a possible taper in October, thus why the USD is showing a combatant spirit.
As Marc Chandler, Global Head of Currency Strategy at BBH, notes: "Bullard's comments before the weekend that it was a close decision and tapering was possible in October if the economic data was better, keeps the market on edge."