12 Feb 2014
AUD/USD meets heavy supply
FXStreet (Guatemala) - There has been some debate as to whether the AUD/USD is making a bottom here and with the current run up to test the 0.90 handle out, the pair is starting to meet some supply in the higher end on 0.90 at 0.9070 the high on a stronger dollar.
The markets have remained in Yellen mode and Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the a key comment from Yellen in her testimony. She “strongly supported” the current FOMC policy stance. “This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy” This is giving support to support risk appetite and the US dollar. From yesterday’s calendar in in Asia, Strategists at TD Securities noted that we had the Feb Westpac Consumer Confidence come in at 100.2, vs 103 prior (in contrast to upbeat business confidence); Dec Credit Card Balances $A50.1b vs $A49.7b prior; Dec Credit Card Purchases $A24.8b vs $A22.4b prior. Next up the analysts sight the employment: “We are top of the mkt at +40k (mkt +15k) and with an unchanged participation rate of 64.6% lowers the unemployment rate to 5.7% (mkt 5.9%, last 5.8%). There will be a Census-based population benchmarking so expect some back revisions”.
AUD/USD Levels
The 20 DMA is 0.8836, the 50 DMA is 0.8908 and the 20 DMA is 0.9239. RSI (14) reads 69.69. Supports are ascending from 0.8938, 0.8962, 0.8983 and 0.9007. Spot is 0.9025 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.
The markets have remained in Yellen mode and Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the a key comment from Yellen in her testimony. She “strongly supported” the current FOMC policy stance. “This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy” This is giving support to support risk appetite and the US dollar. From yesterday’s calendar in in Asia, Strategists at TD Securities noted that we had the Feb Westpac Consumer Confidence come in at 100.2, vs 103 prior (in contrast to upbeat business confidence); Dec Credit Card Balances $A50.1b vs $A49.7b prior; Dec Credit Card Purchases $A24.8b vs $A22.4b prior. Next up the analysts sight the employment: “We are top of the mkt at +40k (mkt +15k) and with an unchanged participation rate of 64.6% lowers the unemployment rate to 5.7% (mkt 5.9%, last 5.8%). There will be a Census-based population benchmarking so expect some back revisions”.
AUD/USD Levels
The 20 DMA is 0.8836, the 50 DMA is 0.8908 and the 20 DMA is 0.9239. RSI (14) reads 69.69. Supports are ascending from 0.8938, 0.8962, 0.8983 and 0.9007. Spot is 0.9025 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.