AUD/USD – Aussie Slide Continues on Excellent US GDP

AUD/USD has posted losses on Tuesday, continuing the trend which started the week. The struggling Aussie has lost about 140 points since the start of the week. Early in the North American session, the pair is trading in the mid-0.85 range. On the release front, the sole Australian release was a speech from RBA Deputy Governor Philip Lowe in Sydney. We’ll get a look at Construction Work Done early on Wednesday. In the US, GDP jumped 3.9% in Q3, beating expectations. Consumer Confidence slipped to 88.7 points.

The US economic growth continues to rack up impressive numbers, posting an excellent gain of 3.9% in Q3, well above the estimate of 3.3%. This followed a gain in Q2 of 4.2%, which also beat the estimate. The other key release, Consumer Confidence, was unexpectedly soft, dropping to 88.7 points. This was well off the estimate of 95.9 points.

AUD/USD for Tuesday, November 25, 2014

AUD/USD November 25 at 15:00 GMT

AUD/USD 0.8546 H: 0.8618 L: 0.8514

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.8240 0.8315 0.8456 0.8550 0.8668 0.8763

 

  • AUD/USD was uneventful in the Asian session. In European trade, the pair lost ground, breaking below support at 0.8550. The pair is steady in the North American session.
  • 0.8456 is providing strong support.
  • 0.8550 has reverted to a resistance role as the Aussie continues to lose ground. This line remains fluid and could see further activity in the North American session. 0.8668 is stronger.
  • Current range: 0.8456 to 0.8550.

Further levels in both directions:

  • Below: 0.8456, 0.8315, 0.8240 and 0.8150
  • Above: 0.8550, 0.8668, 0.8763, 0.8820 and 0.8953

 

OANDA’s Open Positions Ratio

AUD/USD ratio is pointing to gains in long positions on Tuesday. This is not consistent with the movement of the pair, as the Australian dollar continues to lose ground. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD reversing its sharp slide and moving higher.

AUD/USD Fundamentals

  • 9:05 RBA Deputy Governor Philip Lowe Speaks.
  • 13:30 US Preliminary GDP. Estimate 3.3%. Actual 3.9%.
  • 13:30 US Preliminary GDP Price Index.  Estimate 1.3%. Actual 1.4%.
  • 14:00 US HPI. Estimate 0.5%. Actual 0.0%.
  • 14:00 US S&P/CS Composite-20 HPI. Estimate 4.7%. Actual 4.9%.
  • 15:00 US CB Consumer Confidence. Estimate 95.9 points. Actual 88.7 points.
  • 15:00 US Richmond Manufacturing Index. Estimate 17 points. Actual 4 points.

*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.