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25 Apr 2016
AUD/USD: headed to late March lows at 0.7477?
AUD/USD is consolidated below the 1hr 200 sma at 0.7734 is supported currently by the 20 sma on the same time frame at 0.7710 with lows of 0.7691 intraday.
AUD/USD is pressured after number of winning sessions this month from the rally of 0.7500 on the 7th April with seven positive daily closes in 11 days, reaching highs of 0.7834 on 20th April. The recovery cam in the wake of an easier Fed stance and a subsequent recovery in risk, global stocks, emerging markets and commodities.
Oil has been one of the main catalysts driving commodity prices and the Aussie higher. US Oil had recovered back to $44.45 on 21st April, but has since made a low of $42.73 and the Aussie has subsequently drifted to the downside as well. While markets were thin overnight with Australia out, a lack of data scheduled ahead we look further down the calendar for CPI for Australia and then the FOMC as next scheduled catalyst.
AUD/USD levels
AUD/USD's recent rally made it to the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836.
"The late March high at 0.7722 has already been hit with the next lower mid-March high at 0.7680 being targeted next. Below it the two month support line can be seen at 0.7656," explained Karen Jones, analyst at Commerzbank who added, "While last week's low at 0.7597 underpins overall bullish pressure may persist. Below 0.7597 attention could revert to support, namely 0.7477, the late March low, and 0.7416 (16th March low)."
AUD/USD is pressured after number of winning sessions this month from the rally of 0.7500 on the 7th April with seven positive daily closes in 11 days, reaching highs of 0.7834 on 20th April. The recovery cam in the wake of an easier Fed stance and a subsequent recovery in risk, global stocks, emerging markets and commodities.
Oil has been one of the main catalysts driving commodity prices and the Aussie higher. US Oil had recovered back to $44.45 on 21st April, but has since made a low of $42.73 and the Aussie has subsequently drifted to the downside as well. While markets were thin overnight with Australia out, a lack of data scheduled ahead we look further down the calendar for CPI for Australia and then the FOMC as next scheduled catalyst.
AUD/USD levels
AUD/USD's recent rally made it to the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836.
"The late March high at 0.7722 has already been hit with the next lower mid-March high at 0.7680 being targeted next. Below it the two month support line can be seen at 0.7656," explained Karen Jones, analyst at Commerzbank who added, "While last week's low at 0.7597 underpins overall bullish pressure may persist. Below 0.7597 attention could revert to support, namely 0.7477, the late March low, and 0.7416 (16th March low)."