AUD/USD – Aussie Posts Gains on Strong Australian Data

AUD/USD has posted gains on Monday, as the pair trades just shy of the 0.85 line. The struggling Aussie had an awful week, losing about 180 points to the US dollar. On the release front, Australian Company Operating Profits bounced back in Q3, posting a gain of 0.5%. In the US, ISM Manufacturing PMI came in at 58.7 points, showing little change from the previous release.

The week started on a high note in Australia, as Company Operating Profits posted a gain of 0.5% in Q3, rebounding from a sharp decline of -6.9% in Q2. The markets had predicted a decline of 1.2%. Early on Tuesday, we’ll get a look at the RBA Cash Rate and Building Approvals.

In the US, ISM Manufacturing PMI dropped to 58.7 points, close to the previous release of 59.0 points. This easily beat the estimate of 57.9 points. Last week, US numbers were largely disappointing, as unemployment claims, housing and consumer confidence numbers missed their estimates. Despite the weak data, the US dollar beat up on the Aussie last week, gaining close to 200 points.

AUD/USD for Monday, December 1, 2014

AUD/USD December 1 at 15:25 GMT

AUD/USD 0.8494 L: 0.8527 H: 0.8418

 

AUD/USD Technical

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

 

  • AUD/USD posted losses late in the Asian session. The pair rebounded in European trade and posted sharp gains, breaking past resistance at 0.8456. AUD/USD has lost ground early in the North American session.
  • 0.8550 is an immediate resistance line. 0.8668 is next.
  • 0.8456 has reverted to a support role as the Aussie has posted gains. 0.8315 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 short positions on Monday, continuing the direction we saw late last week. This is not consistent with the movement of the pair, as the Australian dollar has posted gains. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD continuing to move higher.

AUD/USD Fundamentals

  • 00:30 Australian Company Operating Profits. Estimate -1.2%. Actual +0.5%.
  • 5:30 Australian Commodity Prices. Actual -18.6%.
  • 14:45 US Final Manufacturing PMI. Estimate 55.0 points. Actual 54.8 points.
  • 15:00 US ISM Manufacturing PMI. Estimate 57.9 points. Actual 58.7 points.
  • 15:00 US Manufacturing Prices. Estimate 52.6 points. Actual 44.5 points.
  • 17:15 US FOMC Member William Dudley Speaks.
  • 18:00 US FOMC Member Stanley Fischer Speaks.

*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.