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AUD/USD: short term upside recovery losing steam

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - AUD/USD is currently trading at 0.7249 with a high of 0.7283 and a low of 0.7227.

    AUD/USD bulls were committing to the Aussie, but US traders are likely heading off now for their holidays and the price is levelling out here ahead of the close. There had otherwise been the series of upbeat US data starting today with the Durable Goods that smashed expectations arriving at 3.0% vs just 1.5% expected and -0.8% previous. The PCE came in line with expectations y/y while M/M missed lower by 0.1%.

    Nevertheless, the data, that includes the recent Nonfarm Payrolls print, is stacking up for the FOMC to likely vote for a rate hike in December and supports the bid in the greenback. However, the RBA has been relieved of late with a series of improvements in various sectors of the economy, specifically in the jobs market and thus the Central Bank is expected to hold until February at least next year.

    AUD/USD levels

    Technically, Valeria Bednarik, chief analyst at FXStreet explained that the short term picture suggests the pair may correct lower, as in 1 chart, the price develops below a horizontal 20 SMA, while the technical indicators head slightly lower below their mid-lines. "In the 4 hours chart, however, the price remains above its 20 SMA, while the technical indicators aim north in positive territory, favoring further gains after a short term downward corrective move."
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