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AUD/USD – Aussie Shrugs Off Weak US Core Durable Goods

AUD/USD continues to show little movement so far this week, as the pair trades in the mid-0.92 range late in Tuesday’s European session. On the release front, US Core Durable Goods slipped to a four-month low. We’ll get a look at CB Consumer Confidence later in the day. The markets are expecting another strong reading in the April release. There are no Australian releases on Tuesday.

US Core Durable Goods Orders, the primary gauge of manufacturing activity, disappointed in April. The indicator slumped to just 0.1%, missing the estimate of 0.2%. This compared to a strong gain of 2.0% last month. Durable Goods Orders dropped to 0.8%, but did beat the estimate of -0.5%.

Australian consumers were in a sour mood in April, as Consumer Sentiment plunged 6.8%, its steepest decline since August 2011. Weaker consumer confidence usually translates into less consumer spending, a key engine of economic growth. With the recent Australian budget offering tax increases and spending cuts, the fragile Australian economy is expected to slow down, and this could hurt the Australian dollar. We’ll get a look at the highlight of the week, Private Capital Expenditure, early on Wednesday.

 

AUD/USD for Tuesday, May 27, 2014

Forex Rate Graph 21/1/13

AUD/USD May 27 at 12:45 GMT

AUD/USD 0.9254 H: 0.9274 L: 0.9248

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.9000 0.9119 0.9229 0.9361 0.9446 0.9617

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

AUD/USD ratio is pointing to gains in short positions in Tuesday trading. This is not consistent with the movement from the pair, which is not showing very little activity. The ratio has a strong majority of long positions, indicative of trader bias towards the Australian dollar breaking out of range trading and moving upwards.

AUD/USD continues to look listless on Tuesday. The pair is unchanged is steady in the European session.

 

AUD/USD Fundamentals

*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 [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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