14 Oct 2013
AUD/USD attempts to close in down-gap post China CPI/PPI
FXstreet.com (Barcelona) - AUD/USD is trading higher following China's September CPI, which came above expectations at 3.1% y/y vs. expected +2.8%, prior +2.6%, while the PPI stood at -1.3% y/y vs. expected -1.4%, prior -1.6%.
The positive reaction in the AUD/USD should be nonetheless perceived in a context of a trendless short term market, as the price continues to struggle ahead of 0.95 round number. So far in Asia, on the back of poor Chinese export's growth over the weekend, the Aussie is 20 pips off its session low 0.9425, yet limited by 0.9450 intraday offers, 15/20 pips off NY close at 0.9470.
Valeria Bednarik, Chief Analyst at FXstreet.com, notes the pair showing little direction, "with the 4 hours chart showing a flat 20 SMA and indicators near their midlines, also lacking a clear direction." Even if later on th day/week the pair weakens further, Bednarik expects "buyers to be waiting on dips towards the 0.9370 support."
The positive reaction in the AUD/USD should be nonetheless perceived in a context of a trendless short term market, as the price continues to struggle ahead of 0.95 round number. So far in Asia, on the back of poor Chinese export's growth over the weekend, the Aussie is 20 pips off its session low 0.9425, yet limited by 0.9450 intraday offers, 15/20 pips off NY close at 0.9470.
Valeria Bednarik, Chief Analyst at FXstreet.com, notes the pair showing little direction, "with the 4 hours chart showing a flat 20 SMA and indicators near their midlines, also lacking a clear direction." Even if later on th day/week the pair weakens further, Bednarik expects "buyers to be waiting on dips towards the 0.9370 support."