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6 Aug 2013
AUD/USD surrenders gains, around 0.8960
FXstreet.com (Edinburgh) -After an ephemeral advance through the psychological barrier at 0.9000, sellers turned up and dragged the AUD/USD back to the 0.8960 region on Tuesday.
AUD/USD remains bearish
The pair is advancing for the second consecutive session so far, trimming last week’s sharp losses after the RBA cut the repo rate to 2.5% on its monetary policy meeting, broadly in line with market expectations. In the opinion of Jane Foley, Strategist at Rabobank, “CFTC data indicate that in the approach to today’s RBA policy meeting speculators built record levels of AUD short positions. This suggests that the AUD will be far more reactive to good news in the near-term than to bad. On the back of this we would look to buy AUD/USD on dips with the expectations that the AUD can climb back in the July range of AUD/USD0.90 to 0.93 range in the coming weeks”.
AUD/USD key levels
The pair is now up 0.40% at 0.8966 and a break above 0.9006 (high Aug.6) would aim for 0.9028 (38.2% 0.9320-0.8848) and then 0.9063 (MA10d). On the flip side, support levels align at 0.8907 (low Aug.6) followed by 0.8848 (low Aug.5) and then 0.8846 (low Aug.27 2010).
AUD/USD remains bearish
The pair is advancing for the second consecutive session so far, trimming last week’s sharp losses after the RBA cut the repo rate to 2.5% on its monetary policy meeting, broadly in line with market expectations. In the opinion of Jane Foley, Strategist at Rabobank, “CFTC data indicate that in the approach to today’s RBA policy meeting speculators built record levels of AUD short positions. This suggests that the AUD will be far more reactive to good news in the near-term than to bad. On the back of this we would look to buy AUD/USD on dips with the expectations that the AUD can climb back in the July range of AUD/USD0.90 to 0.93 range in the coming weeks”.
AUD/USD key levels
The pair is now up 0.40% at 0.8966 and a break above 0.9006 (high Aug.6) would aim for 0.9028 (38.2% 0.9320-0.8848) and then 0.9063 (MA10d). On the flip side, support levels align at 0.8907 (low Aug.6) followed by 0.8848 (low Aug.5) and then 0.8846 (low Aug.27 2010).