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31 Jul 2014
AUD/USD breaks key 0.9220/30, sell on rallies?
FXStreet (Bali) - The Australian Dollar was one of the worst performing currencies on Wednesday, with the Yen the only currency having a worse day.
FOMC same old, but AUD price action telling...
Quite telling about the next possible bias for the pair was the fact that despite the Fed offered little excuses for the market to raise rate-hike expectations, the AUD was nonetheless unable to gain much ground following the hammering of prices post upbeat US GDP in Q2, suggesting that the market remains long and risk are growing to the downside.
US NFP next catalyst
Amid a light calendar for the interest of AUD and USD traders - US jobless claims only event to take note of -, the next big catalyst to trigger order flow will be the US Non-Farm Payrolls, due on Friday at 12.30GMT. The majority of analysts polled for the US NFP forecast repor by FXStreet, see July employment gains in the 220-260K area.
Time to sell on rallies with stronger conviction?
In terms of technicals, the absorption of demand through 0.9320-30 led the Aussie to print its lowest since June 6 at 0.9302, followed by a strong bounce towards 0.9350, which found the next line of offers impending further recovery, leading to a daily NY close at 0.9330, which communicates vulnerability bu bulls to regain key areas. Given the strong sell flows recently entered on the AUD/USD market, puts the odds in favour of selling rallies. From an hourly perspective, 0.9365-75 is first noticeable supply, with plenty of offers still seen each tick up from there, with only a break above 0.9325-30 allowing further upside.
FOMC same old, but AUD price action telling...
Quite telling about the next possible bias for the pair was the fact that despite the Fed offered little excuses for the market to raise rate-hike expectations, the AUD was nonetheless unable to gain much ground following the hammering of prices post upbeat US GDP in Q2, suggesting that the market remains long and risk are growing to the downside.
US NFP next catalyst
Amid a light calendar for the interest of AUD and USD traders - US jobless claims only event to take note of -, the next big catalyst to trigger order flow will be the US Non-Farm Payrolls, due on Friday at 12.30GMT. The majority of analysts polled for the US NFP forecast repor by FXStreet, see July employment gains in the 220-260K area.
Time to sell on rallies with stronger conviction?
In terms of technicals, the absorption of demand through 0.9320-30 led the Aussie to print its lowest since June 6 at 0.9302, followed by a strong bounce towards 0.9350, which found the next line of offers impending further recovery, leading to a daily NY close at 0.9330, which communicates vulnerability bu bulls to regain key areas. Given the strong sell flows recently entered on the AUD/USD market, puts the odds in favour of selling rallies. From an hourly perspective, 0.9365-75 is first noticeable supply, with plenty of offers still seen each tick up from there, with only a break above 0.9325-30 allowing further upside.