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9 Feb 2016
AUD/USD: downside open on lackluster outlook
AUD/USD is breaking on the back of the NAB business survey.
The data was mixed, but shows that it is too early for conditions to excel and that confidence is sub-trend, but holding up reasonably well in the face of financial turmoil. "Business conditions eased, but still consistent with non-mining recovery."
Elsewhere, the greenback was sold off heavily and markets are holding in the reigns ahead of Yellen's testimony this week. There is a strong air of caution reemerging as we progress through the year with oil and global deflationary pressures and concerns that the Fed will not be able to continue with a policy of raising rates, exposing the greenback to potential and heavy losses. We also have the RBA's governor testifying and this may well be the calm before the storm.
AUD/USD levels
Technically, the price is testing key support having broken to the downside below the 20 sma on the hourly chart, targeting the psychological handle of 0.70. A break of there opens the downside back up for a reversal of the late January uptrend, commencing in the 0.6820's.
The data was mixed, but shows that it is too early for conditions to excel and that confidence is sub-trend, but holding up reasonably well in the face of financial turmoil. "Business conditions eased, but still consistent with non-mining recovery."
Elsewhere, the greenback was sold off heavily and markets are holding in the reigns ahead of Yellen's testimony this week. There is a strong air of caution reemerging as we progress through the year with oil and global deflationary pressures and concerns that the Fed will not be able to continue with a policy of raising rates, exposing the greenback to potential and heavy losses. We also have the RBA's governor testifying and this may well be the calm before the storm.
AUD/USD levels
Technically, the price is testing key support having broken to the downside below the 20 sma on the hourly chart, targeting the psychological handle of 0.70. A break of there opens the downside back up for a reversal of the late January uptrend, commencing in the 0.6820's.