AUD/USD tests 3-month highs, then retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The AUD bulls fought back control in the mid-Asian trades, pushing AUD/USD back on the bids and tested multi-month highs near 0.7380 region.

    AUD/USD rises from 0.7340 lows

    Currently, the AUD/USD pair gains 0.15% to trade at 0.7363, easing-off fresh three-month lows reached at 0.7377 last hours. The Aussie’s recovery from retail sales induced brief losses faded at Thursday’s and the prices turned lower as cautious tone prevailed in the markets ahead of the US NFP report and commencement of the National People's Congress (China's annual parliament) this weekend. During the weekend’s gathering, the official 2016 China GDP forecast will be announced.

    Earlier on the day, the AUD/USD pair corrected lower to 0.7340 following the release of weaker than expected Australian retail sales data. However, the bulls regained momentum as they analysed that the retail turnover had in fact bettered the previous reading. The retail trade rose 0.3% in Jan, following no growth (0.0%) reported in Dec and a rise of 0.4% in Nov.
    Markets had predicted a growth of 0.4% in Jan.

    Meanwhile, the sentiment around the oil markets will be closely eyed for further momentum ahead of today’s main risk event, the US non-farm payrolls data.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7388/0.7400 (Dec 4 High/ round number) above which gains could be extended to the next hurdle located at 0.7436/41 (daily R2/ Aug high). On the flip side, the immediate support located at 0.7337/40 (daily pivot & low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7300 (psychological levels).
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