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14 Aug 2013
AUD/USD ducks below .9111 support – meaning 0.8930 is next test
FXstreet.com (Barcelona) - The AUD/USD surprised bulls by dipping below 0.9111 on lower Aussie business confidence numbers and persistent chatter about a September start to Fed tapering.
AUD/USD being weighed down by weak Aussie data and Fed tapering talk
The National Australia Bank’s Business Confidence and Conditions numbers came out lower than expected and, despite slightly weak data from the US, rumors of a September start to the Fed’s tapering program combined to drag down the AUD/USD Tuesday. The cross did finish off the lows, but the bounce has done little to inspire confidence in the bulls after 0.9111 support was broken.
Aussie Consumer Confidence and the US Producer Price Index will be the two data points worth watching on Wednesday – but will they have any real influence versus all the tapering talk?
Technical outlook for AUD/USD
Technicians pointed to the 23.6% Fibonacci retracement of the January to August decline in AUD/USD at 0.9226 as the first obvious test for the cross. That resistance held last week and a corrective pullback has started. Support for this pullback could have been 0.9111, but that has already given way. The next range of potential support is 0.8857 – 0.8930. Above 0.9226, the next key resistance won’t come into play until the 38.2% retracement line at 0.9488.
AUD/USD being weighed down by weak Aussie data and Fed tapering talk
The National Australia Bank’s Business Confidence and Conditions numbers came out lower than expected and, despite slightly weak data from the US, rumors of a September start to the Fed’s tapering program combined to drag down the AUD/USD Tuesday. The cross did finish off the lows, but the bounce has done little to inspire confidence in the bulls after 0.9111 support was broken.
Aussie Consumer Confidence and the US Producer Price Index will be the two data points worth watching on Wednesday – but will they have any real influence versus all the tapering talk?
Technical outlook for AUD/USD
Technicians pointed to the 23.6% Fibonacci retracement of the January to August decline in AUD/USD at 0.9226 as the first obvious test for the cross. That resistance held last week and a corrective pullback has started. Support for this pullback could have been 0.9111, but that has already given way. The next range of potential support is 0.8857 – 0.8930. Above 0.9226, the next key resistance won’t come into play until the 38.2% retracement line at 0.9488.