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24 Feb 2014
AUD/USD heavy under 0.90, range trading prevails
FXStreet (Bali) - AUD/USD continues to trade within its familiar 0.8920/35 - 0.9080 day range, with the latest price action still showing a heavy undertone as the recent CNH selling from Friday weighed on the Aussie.
USD/CNH spike leads to AUD decline
Following the move down to test 0.8935 - last week's low - on poor China's HSBC PMI, the pair made it back towards 0.90, but the surge in USD/CNH above +6.10 stops led to a new retreat in the Aussie, only finding bids circa 0.8950 before stabilizing 15/20 pips below the round number at the US close.
In Asia, the price has been taken down over 20 pips in the first few minutes, currently around 0.8965/70.
AUD/USD outlook
Technically, AUD/USD short term momentum points at downward pressures for a retest of 0.8920/35 range bottom, however, only a break of below will provide further clarity on the directional bias. Failure to break through the bottom of the range should see range extension in the day ahead.
USD/CNH spike leads to AUD decline
Following the move down to test 0.8935 - last week's low - on poor China's HSBC PMI, the pair made it back towards 0.90, but the surge in USD/CNH above +6.10 stops led to a new retreat in the Aussie, only finding bids circa 0.8950 before stabilizing 15/20 pips below the round number at the US close.
In Asia, the price has been taken down over 20 pips in the first few minutes, currently around 0.8965/70.
AUD/USD outlook
Technically, AUD/USD short term momentum points at downward pressures for a retest of 0.8920/35 range bottom, however, only a break of below will provide further clarity on the directional bias. Failure to break through the bottom of the range should see range extension in the day ahead.