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AUD/USD – Aussie Posts Gains On Positive Australian Data

AUD/USD has posted gains on Wednesday, as the pair trades at the 0.79 line. In Australia, Construction Work Done posted a decline of 0.2%, well above expectations. Wage Price Index gained 0.6%, matching expectations. In the US, Federal Reserve head Janet Yellen continues a second day of testimony in Congress. We’ll get a look at New Home Sales during the day, with the markets expecting a softer reading in the January report.

Janet Yellen testified before a Senate committee on Tuesday, saying that the Fed was “unlikely” to raise interest rates in the next few months, given current economic conditions. Her remarks seemed aimed at quelling rising speculation about a rate hike sometime in mid-2015, which has helped boost the US dollar’s performance against its major rivals. Yellen noted that the continuing growth should lead to the unemployment rate continuing to fall. The Fed Chair will resume testimony before the House Financial Services Committee on Wednesday, but it’s not likely that Yellen will say anything which will shake up the markets.

The Australian dollar has moved higher on Wednesday, taking advantage of positive Australian data. Construction Work Done posted a third straight decline, but the drop of 0.2% was much better than the forecast of -1.2%. Meanwhile, the Wage Price Index remained unchanged for a third consecutive quarter, posting a gain of 0.6% in Q4. This indicator is closely monitored as wage prices are an important indicator of consumer inflation.

AUD/USD for Wednesday, February 25, 2015

AUD/USD February 25 at 13:55 GMT

AUD/USD 0.7900 H: 0.7900 L: 0.7830

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.7582 0.7684 0.7799 0.7904 0.8081 0.8150

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

(Shows the ratio of long vs. short positions held for the AUD/USD among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)

AUDUSD_ratio_2-25-15 [1]

AUD/USD ratio is pointing to short positions in Wednesday. This is not consistent with the pair’s movement, as the Aussie has posted gains. The ratio has switched to a majority of short positions, indicative of trader bias towards the Australian dollar reversing direction and moving lower.

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 [5]

Market Analyst at OANDA [6]
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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