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16 May 2014
AUD/USD choppy around 0.9350
FXStreet (Edinburgh) - The AUD is trading almost unchanged at the end of the week, taking the AUD/USD to the 0.9355/50 region.
AUD/USD capped around 0.9400
The pair kept a narrow range throughout the week although the 0.9400/10 band still remains elusive for AUD bulls. Spot is looking to keep the trade above the 0.9300 mark despite the resurgence of a sentiment towards the greenback as of late. “The search for yield has benefited the AUD this year, again driving a wedge between the currency and its key commodity prices. However, as this wedge appears to widen the rate outlook in Australia, it will at the margin drift back towards easing, or at least a much longer period before tightening, at the same time as rate hikes in the US may come into view. As such, we see downside risk for the AUD beginning to dominate again”, noted Greg Gibbs, FX Strategist at RBS.
AUD/USD levels to watch
As of writing the pair is losing 0.08% at 0.9348 with the next support at 0.9227 (low Apr.29) ahead of 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the upside, a break above 0.9427 (high Apr.11) would aim for 0.9461 (high Apr.10) and then 0.9500 (psychological level).
AUD/USD capped around 0.9400
The pair kept a narrow range throughout the week although the 0.9400/10 band still remains elusive for AUD bulls. Spot is looking to keep the trade above the 0.9300 mark despite the resurgence of a sentiment towards the greenback as of late. “The search for yield has benefited the AUD this year, again driving a wedge between the currency and its key commodity prices. However, as this wedge appears to widen the rate outlook in Australia, it will at the margin drift back towards easing, or at least a much longer period before tightening, at the same time as rate hikes in the US may come into view. As such, we see downside risk for the AUD beginning to dominate again”, noted Greg Gibbs, FX Strategist at RBS.
AUD/USD levels to watch
As of writing the pair is losing 0.08% at 0.9348 with the next support at 0.9227 (low Apr.29) ahead of 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the upside, a break above 0.9427 (high Apr.11) would aim for 0.9461 (high Apr.10) and then 0.9500 (psychological level).