AUD/USD: losing confidence on the 0.70 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD has lost the 0.70 handle in the early part of the week as we progress through Tokyo open and heading towards the Chinese open.

    The Aussie is subject to the mood in risk and a sure bet is to the downside in the absence of anything markedly fundamental to support the major commodity currency. However, we got a little insight to the business conditions from December's business for the Australian, not doing anything to support the Aussie with a reading of 7 vs 10 prior and confidence 3 vs 5 prior. The Yuan fix failed to set off any fireworks again as the PBoC sets the reference rate for Monday at 6.5557.

    AUD/USD levels

    Technically, a break of the 0.70 handle to the downside at this stage of the game is not as significant as the recovery that was made last week and it will take some prolonged periods and closes below the 0.70 handle to confirm a reversal. 0.6980 is, however, significant on the short-term sticks as is 20 pips below it. The 1hr 200 sma was a location that was fending off the bulls attempts all of last week and was only penetrated fully on one occasions so it too is a significant supporting level. S3 at 0.6917 is final stop for the Aussie on the downside.

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