AUD/USD: Will key support 0.7130 continue to hold?

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:
    AUD/USD has come under ild selling pressure at the Tokyo open, with the exchange rate taken from 0.7165 session highs (during the NY-Tokyo transition) to currently trade at session lows some 20 odd pips lower circa 0.7140/45.

    AUD resilient post Aus jobs

    Despite minor weakness in early Asia, the Australian Dollar continues to show resilience to depreciate much further despite a dismal Australian employment report on Thursday. Looking at the latest developments in the CoT report via CFTC, large speculators and asset managers have been notable buyers on Australian Dollars on dips in recent weeks, with reports also suggesting that a growing number of Japanese institutions are turning towards the higher-yield appeal of Aussie bonds (AUD +) following the introduction of negative rates by the BOJ. Such backdrop may provide some insights as to why the Aussie is being consistently bid off 7130.

    AUD/USD key levels for today

    On the downside, 0.7140 becomes the first intraday level to focus on followed by 0.7130 (persistent bounces off this area on Thursday), ahead of 0.71 round number. On the upside, 0.7150 mid round number is the first minnor hurdle ahead of 0.7170/75 (origin supply Aus jobs miss), followed by 0.7190/72 (trend highs/round number).
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