AUD/USD cracks 0.7100 on RBA’s Edwards

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Risk-off market profile combined with RBA’s Edwards comments knocked-off the AUD/USD pair below the key support hourly 200-SMA support, now breaking through 0.71 handle.

    AUD/USD breaches hourly 200-SMA at 0.7111

    Currently, the AUD/USD pair drops –0.84% at fresh session lows of 0.7097, reversing a spike to 0.7162 highs. The Aussie came under heavily selling pressure as the Japanese traders entered the markets, bringing along risk-off trades as the Asian stocks dived deep in the red. Japan’s Nikkei is down -2.20%, Australia’s ASX 200 drops -0.66%, while the Shanghai Composite trades marginally lower below 2900 levels.

    Further, a renewed selling-wave hit the Aussie last minutes after RBA’s Edwards hit the wires and talked down the domestic currency, noting that he would be more comfortable with AUD/USD at 0.65.

    Nothing of note for the AUD this session, and hence, attention now shifts towards the US CPI figures due later today, while oil and stocks will continue to drive market sentiment.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7135/42 (100-DMA/ 1h 100-SMA) above which gains could be extended to the next hurdle located at 0.7185/89 (Feb 18 & 17 High). On the flip side, the immediate support located at 0.7087 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7062/60 (Feb 12 & 5 Low).
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