5 Nov 2013
AUD/USD continues to react bearishly to RBA’s discomfort with the elevated AUD
FXstreet.com (Barcelona) - The AUD/USD sold off immediately following the RBA’s interest rate decision and has maintained its depressed level as the European session approaches.
AUD/USD traders heeding the RBA’s jawboning down of the AUD
The Reserve Bank of Australia basically left everything unchanged with their official monetary policy, but the accompanying commentary focused heavily on the uncomfortably (for them) elevated level of the Australian dollar. This is not the first time they have been out lamenting the pricey AUD. Just this weekend, RBA spokespeople were in the press saying they could not see the Aussie Dollar dropping to “more reasonable” levels until the US Dollar was allowed to rise naturally by the Federal Reserve in the US. All the jawboning thus far Tuesday took the AUD/USD from pre-news levels of 0.9497 to a spike low of 0.9462 before rebounding up to 0.9474 currently.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has very short term support at 0.9440 – correction support and horizontal line support. Additional support comes from Monday’s intraday low of 0.9420 and is backed up by the Fibonacci retracement line at 0.9389. Resistance for the cross comes in at last Wednesday’s peak at 0.9515 (and today’s intraday peak at 0.9520) and is backed up by the 10/24 peak at 0.9670 and Monday’s peak of 0.9756.
AUD/USD traders heeding the RBA’s jawboning down of the AUD
The Reserve Bank of Australia basically left everything unchanged with their official monetary policy, but the accompanying commentary focused heavily on the uncomfortably (for them) elevated level of the Australian dollar. This is not the first time they have been out lamenting the pricey AUD. Just this weekend, RBA spokespeople were in the press saying they could not see the Aussie Dollar dropping to “more reasonable” levels until the US Dollar was allowed to rise naturally by the Federal Reserve in the US. All the jawboning thus far Tuesday took the AUD/USD from pre-news levels of 0.9497 to a spike low of 0.9462 before rebounding up to 0.9474 currently.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has very short term support at 0.9440 – correction support and horizontal line support. Additional support comes from Monday’s intraday low of 0.9420 and is backed up by the Fibonacci retracement line at 0.9389. Resistance for the cross comes in at last Wednesday’s peak at 0.9515 (and today’s intraday peak at 0.9520) and is backed up by the 10/24 peak at 0.9670 and Monday’s peak of 0.9756.