AUD/USD – Slight Gains As US Consumer Confidence Remains High

AUD/USD has edged higher on Tuesday, as the pair trades in the high 0.92-range in the North American session. In economic news, US CB Consumer Confidence posted another strong reading in March. There are no Australian releases on Tuesday.

US consumers appear to be optimistic about the economy, according to the latest consumer confidence data. CB Consumer Confidence, a key indicator, posted its second straight reading of 82.3 points in March. This was shy of the estimate of 82.9, but the indicator remains at high levels. Earlier in the week, the UoM Consumer Sentiment jumped to 84.1 points in March, beating the estimate of 83.2. It marked the indicator’s highest level since June. If this optimism continues and translates into increased consumer spending, this should bode well for the US economy.

US housing numbers were a major disappointment last week, but it was a different story on Monday, as Pending Home Sales soared in March. The key indicator jumped 3.4%, easily beating the estimate of 1.0%. This marked its biggest monthly gain since last May. The indicator has posted mostly declines in recent readings, so the strong gain was welcome news. Meanwhile, US consumers appear to be content, as the UoM Consumer Sentiment jumped to 84.1 points in March, beating the estimate of 83.2. It marked the indicator’s highest level since June. If the optimism continues and translates into increased consumer spending, this should bode well for the US economy.

The Aussie lost ground last week after a disappointing CPI release, 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.

AUD/USD for Tuesday, April 29, 2014

AUD/USD April 29 at 14:30 GMT

AUD/USD 0.9279 H: 0.9282 L: 0.9228

AUD/USD Technical

• AUD/USD has edged higher in Tuesday trade. The pair briefly broke below support at 0.9229 in the Asian session but subsequently bounced higher.
• On the downside, 0.9229 is providing support. 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 Tuesday trade. This is consistent with the movement of the pair, with the Aussie posting gains. The ratio has a majority of long positions, indicative of trader bias towards the Australian dollar moving to higher ground.

AUD/USD has pointed to gains and the pair is within striking distance of the 0.93 line.

AUD/USD Fundamentals

• 13:00 US S&P/CS Composite-20 HPI. Estimate 12.9%. Actual 12.9%.
• 14:00 US CB Consumer Confidence. Estimate 82.9 points. Actual 82.3 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.