AUD/USD minor-recovery stalls near 0.7050

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    A renewed bout of selling stalled in the AUD/USD pair, and the prices trimmed gains to hover near 20-DMA over the last hours, despite heavy declines seen in the Asian indices.

    AUD/USD finds support from higher oil

    Currently, the AUD/USD pair trades -0.85% lower at 0.7028, having posted fresh session lows at 0.7019 in early Asia. The Aussie snapped previous rebound and fell back in the negative territory as higher-yielding currencies suffered the most amid global equities sell-off sparked by doubts whether the persisting negative interest rates regime will help stimulate global growth.

    However, in the last hours, the AUD/USD pair is seen making minor-recovery attempts from daily lows as upbeat momentum surrounding oil prices rescued the bulls from the selling-wave.

    Earlier today, the Aussie came under renewed selling pressure after the NAB Business conditions data show deteriorating business morale in wake of the recent financial markets turbulence.

    The National Australia Bank (NAB) Business Confidence index was unchanged at 2 in January after December's reading was revised down from 3, while the NAB Business Conditions index slipped from 7 to 5, the lowest reading since April 2015.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7076 (daily high/ 1h 20-SMA) above which gains could be extended to the next hurdle located at 0.7099/0.7105 (1h 200 & 50-SMA). On the flip side, the immediate support located at 0.7009/00 (Daily S2/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6944 (Jan 25 Low).

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