AUD/USD – Aussie Eyes 93 In Thin Holiday Trading

AUD/USD has posted gains on Friday, as the pair trades close to the 0.93 line in the European session. Trade has been light on the Australian markets, which were off for a holiday on Thursday. In the US, it’s a light schedule of events, highlighted by UoM Consumer Sentiment.

US releases painted a mixed picture on Thursday. Unemployment Claims jumped to 329 thousand, its highest level since mid-February. This was much higher than the estimate of 309 thousand. There was much better news from the manufacturing front, as Core Durable Goods Orders jumped 2.0% in March, crushing the estimate of 0.6%. Durable Goods Orders kept up the pace with a sharp gain of 2.6%, beating the estimate of 2.1%.

Earlier in the week, Australia released CPI, one of the most important economic indicators. The indicator is released each quarter, magnifying the impact of each release. The index proved once again to be a market-mover, as the Australian dollar slipped badly, as CPI posted a gain of 0.6% in Q1, falling short of the estimate of 0.8%. CPI has now dropped for a second straight quarter, and is sharply down from its gain of 1.2% back in Q3 of 2013.

In the US, New Home Sales slumped badly, as the key indicator plunged to 384 thousand in March, down from 440 thousand in the previous release. The weak reading was nowhere near the estimate of 455 thousand, and marked an eight-month low for the key housing indicator. The housing sector is showing signs of weakness, as both New Home Sales and Existing Home Sales have been on a sustained downward trend.

 

AUD/USD for Friday, April 25, 2014

Forex Rate Graph 21/1/13

AUD/USD April 25 at 11:20 GMT

AUD/USD 0.9292 H: 0.9292 L: 0.9254

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.9000 0.9119 0.9229 0.9361 0.9446 0.9542

 

  • AUD/USD has posted gains on Friday trade and is within striking distance of the 0.93 line.
  • On the downside, 0.9229 has some breathing room as the Aussie has moved higher. Next is 0.9119, which is protecting the key 0.9000 level.
  • 0.9361 is the next resistance line.
  • Current range: 0.9229 to 0.9361.

Further levels in both directions:

  • Below: 0.9229, 0.9119, 0.9000 and 0.8893
  • Above: 0.9361, 0.9446, 0.9542, 0.9617 and 0.9703

 

OANDA’s Open Positions Ratio

AUD/USD ratio is pointing to gains in long positions in Friday trade. This is consistent with the movement of the pair, which has posted gains. The ratio has a majority of long positions, indicative of trader bias towards the Australian dollar continuing to move to higher ground.

AUD/USD is trading slightly below the 0.93 line. The pair as posted modest gains in the European session.

 

AUD/USD Fundamentals

  • 13:45 US Flash Services PMI. Estimate 56.2 points.
  • 13:55 US Revised UoM Consumer Sentiment. Estimate 83.2 points.
  • 13:55 US Revised UoM Inflation Expectations.

*Key releases are highlighted in bold

*All release times are GMT

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.