AUD/USD has posted slight losses on Tuesday, as the pair trades in the mid-0.84 range. The Aussie remains in a sharp slide, having lost about 300 points in the past two weeks. In Australia, the RBA held rates at 2.50% and said that rates would remain low for the time being. Building Approvals jumped 11.4%, while the current account deficit narrowed to A$12.5 billion. In the US, it’s a quiet day, with no major releases on the calendar. Federal Reserve Chair Janet Yellen will address an event in Washington.
There were no surprises from the RBA, which held interest rates at 2.50%, a record low. RBA Governor Glenn Stevens reiterated that the central bank plans to keep rates at ultra-low levels for the near future. The RBA has been reluctant to tinker with rate levels, which have remained steady since August 2013. Meanwhile Building Approvals, which tends to show strong movement, jumped 11.4% in October, crushing the estimate of 5.2%. This was the indicator’s strongest showing since September 2013.
The US manufacturing sector continues to expand, as ISM Manufacturing PMI remained strong in November. The index came in at 58.7 points, close to the previous release of 59.0 points, which marked a three-year high. The positive US manufacturing data stands in sharp contrast to the situation in the Eurozone and China. In the Eurozone, manufacturing PMIs in France, Germany and Italy contracted in November. In China, the world’s second largest economy, Manufacturing PMI edged down to 50.3 points, down from the previous reading of 50.8 points.
AUD/USD for Tuesday, December 2, 2014
AUD/USD December 2 at 14:50 GMT
AUD/USD 0.8440 L: 0.8553 H: 0.8436
- AUD/USD posted gains in the Asian session. The pair then retracted and showed sharp losses in European trade. In the North American session, the US dollar is under pressure.
- 0.8456 saw action earlier in the day and is a weak resistance line. 0.8550 is stronger.
- 0.8315 is a strong support line.
- Current range: 0.8315 to 0.8456.
Further levels in both directions:
- Below: 0.8315, 0.8240, 0.8150 and 0.8081
- Above: 0.8456, 0.8550, 0.8668, 0.8763 and 0.8820
OANDA’s Open Positions Ratio
AUD/USD ratio is pointing to gains in short positions on Tuesday, continuing the direction we have seen since late last week. This is consistent with the movement of the pair, as the Australian dollar has posted slight losses. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD moving higher.
- 00:30 Australian Building Approvals. Estimate 5.2%. Actual 11.4%.
- 00:30 Australian Current Account. Estimate 13.5B. Actual -12.5B.
- 00:30 Australian Cash Rate. Estimate 2.50%. Actual 2.50%.
- 00:30 Australian Rate Statement.
- 22:30 Australian Services Index.
- 13:10 US FOMC Member Stanley Fischer Speaks.
- 13:30 US Federal Reserve Chair Janet Yellen Speaks.
- 15:00 US Construction Spending. Estimate 0.6%. Actual 1.1%.
- All Day – US Total Vehicle Sales. Estimate 16.6M.
- 17:00 US FOMC Member Lael Brainard Speaks.
*Key releases are highlighted in bold
*All release times are GMT