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7 Jan 2015
AUD/USD: Sellers re-take control near term
FXStreet (Bali) - After a short-lived bull run seeking liquidity above the 0.8150 area, AUD/USD is back under pressure, having lost the 0.8100 handle again.
An early Asia USD surge allowed AUD/USD to breach key intraday swing low at 0.8080, resulting on the next support at 0.8065 being tested, where some bids re-emerged to keep the rate just above the level, although the rebound has been far from convincing. In Asia today, there is no economic releases of note, with most of the volatility in the pair expected to come via traders' reaction to Fed's minutes later today.
Jim Langlands, Founder at FXCharts, notes: "While the longer term technical picture remains unchanged in looking for a lower Aud, some caution may be warranted if the US bond yields keep sliding lower. Having fallen heavily today, with the 10 years breaking below 2%, the Aud will again begin to look more attractive on a carry-trade basis and may garner some support from the yield differential. On the other side of the coin, if oil prices/stocks keep falling, we could be in for some general risk aversion, which could see the Aud under pressure, especially against the Yen."
An early Asia USD surge allowed AUD/USD to breach key intraday swing low at 0.8080, resulting on the next support at 0.8065 being tested, where some bids re-emerged to keep the rate just above the level, although the rebound has been far from convincing. In Asia today, there is no economic releases of note, with most of the volatility in the pair expected to come via traders' reaction to Fed's minutes later today.
Jim Langlands, Founder at FXCharts, notes: "While the longer term technical picture remains unchanged in looking for a lower Aud, some caution may be warranted if the US bond yields keep sliding lower. Having fallen heavily today, with the 10 years breaking below 2%, the Aud will again begin to look more attractive on a carry-trade basis and may garner some support from the yield differential. On the other side of the coin, if oil prices/stocks keep falling, we could be in for some general risk aversion, which could see the Aud under pressure, especially against the Yen."