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1 Nov 2013
AUD/USD capped by 0.9490
FXstreet.com (Edinburgh) - The Aussie dollar is trading on a firmer tone on Friday, taking the AUD/USD to session highs around 0.9490 where it seems to have lost some vigour.
AUD/USD bolstered by China
Chinese upbeat results from the key manufacturing sector would be the main driver behind today’s upside, after PMI gauges by the official NBS and HSBC posted better than expected prints during October. Data wise in Australia, improvements from the AIG Performance of Mfg Index, Producer Prices and the RBA Commodity Index all exceeded estimates, collaborating with the upside. Greg Gibbs, FX Trading Strategist, commented “In light of the recent stronger than expected Australian and global data, Australian rate cut expectations are largely removed, and the AUD/USD 2yr swap rate spread has widened back out towards its recent high, suggesting upside risk for the AUD”.
AUD/USD levels to watch
As of writing the pair is advancing 0.10% at 0.9465 with the next resistance at 0.9714 (MA200d) and then 0.9758 (high Oct.23). On the flip side, a breakdown of 0.9389 (low Oct.7) would aim for 0.9365 (MA50d) and finally 0.9280 (low Sep.30).
AUD/USD bolstered by China
Chinese upbeat results from the key manufacturing sector would be the main driver behind today’s upside, after PMI gauges by the official NBS and HSBC posted better than expected prints during October. Data wise in Australia, improvements from the AIG Performance of Mfg Index, Producer Prices and the RBA Commodity Index all exceeded estimates, collaborating with the upside. Greg Gibbs, FX Trading Strategist, commented “In light of the recent stronger than expected Australian and global data, Australian rate cut expectations are largely removed, and the AUD/USD 2yr swap rate spread has widened back out towards its recent high, suggesting upside risk for the AUD”.
AUD/USD levels to watch
As of writing the pair is advancing 0.10% at 0.9465 with the next resistance at 0.9714 (MA200d) and then 0.9758 (high Oct.23). On the flip side, a breakdown of 0.9389 (low Oct.7) would aim for 0.9365 (MA50d) and finally 0.9280 (low Sep.30).