AUD/USD – Slumping Aussie Dips Under 0.81

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 Technical

S3 S2 S1 R1 R2 R3
0.7799 0.7904 0.8081 0.8150 0.8214 0.8315

 

  • 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.

AUD/USD Fundamentals

  • 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

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.