AUD/USD has posted slight gains on Monday, as the pair just below the 0.81 line early in North American trade. The shaky Australian dollar is currently at its lowest level since July 2009. Over in the US, there is just one minor release on the schedule, Total Vehicle Sales. As well, FOMC Member John Williams will speak at an event in Boston. There are no Australian releases on Monday.
On Friday, US ISM Manufacturing PMI disappointed, falling to 55.5 points. This missed the forecast of 57.6 points and marked a 6-month low for the index. Still, market sentiment remains positive regarding the US economy and the US dollar continues to look sharp against its major rivals. We’ll get a look at the ISM Non-manufacturing PMI on Tuesday. The markets are expecting a softer reading in the December release.
Australian commodity prices continue to soften, as demand for Australian exports such as iron ore and gold has weakened. The Commodity Prices indicator continues to post sharp declines, and on Friday, the December report showed a loss of 21.2%. These readings point to trouble in the export sector, and the struggling Australian dollar lost about 100 points on Friday.
AUD/USD for Monday, January 5, 2015
AUD/USD January 5 at 15:15 GMT
AUD/USD 0.8087 H: 0.8106 L: 0.8035
- AUD/USD has been marked by choppy trading on Monday. In the North American session, the pair is trading just above support at 0.8081.
- On the downside, 0.8081 has seen action throughout the day and remains fluid. 0.7904 is stronger.
- 0.8150 is an immediate resistance line.
- Current range: 0.8081 to 0.8150.
Further levels in both directions:
- Below: 0.8081, 0.7904, 0.7799 and 0.7701
- Above: 0.8150, 0.8214, 0.8315, 0.8456 and 0.8550
OANDA’s Open Positions Ratio
AUD/USD ratio is pointing to gains in short positions on Monday. This is not consistent with the movement of the pair, as the Australian dollar has posted small gains. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD moving higher.
- 13:00 US FOMC Member John Williams Speaks.
- All Day – US Total Vehicle Sales. Estimate 16.9M.
*Key releases are highlighted in bold
*All release times are GMT