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18 Jun 2013
AUD/USD supported on US data releases
FXstreet.com (London) - AUD/USD has printed as relatively bearish for the US economy, which may offer some respite for the AUD/USD pair.
Despite the dollar making ground steadily elsewhere, AUD/USD have maintained higher regions since the data release.
AUD/USD jumped to 0.9575 from 0.9459 on the release of data revealing a number of factors in the US economy that would contribute to informing the market we are not out of the woods yet. Building permits fell month on month from 1.005m to 0.974m, below a consensus if 0.975m. Housing Starts printed a poorer number than the consensus, 0.914m vrs 0.950m, although coming in higher than the previous 0.856m. Meanwhile, CPI ex food and energy, month on month reads 1.7% and keeps in line with both consensus and previous. With those sets of benign US data, the market will focus its attention again to what the RBA minutes revealed, which do not bowed well for the Australian dollar in the long run. The RBA minutes for the June 4th meeting read: “inflation outlook might provide some scope for further easing”, “it was possible that the exchange rate would depreciate further over time as the terms of trade declined”. The green light for a weaker AUD. Up next on the list of economic factors to watch out for here comes in the form of FOMC tomorrow
Support seen for AUD/USD
Karen Jones at Commerzbank has said that a negative bias will remain while capped by 0.9792, the current June high. The 0.9388 support represents a major break down point longer term. A close below here will introduce scope to 0.9147, then 0.8550 en route to 0.8068, the 2010 low.
Despite the dollar making ground steadily elsewhere, AUD/USD have maintained higher regions since the data release.
AUD/USD jumped to 0.9575 from 0.9459 on the release of data revealing a number of factors in the US economy that would contribute to informing the market we are not out of the woods yet. Building permits fell month on month from 1.005m to 0.974m, below a consensus if 0.975m. Housing Starts printed a poorer number than the consensus, 0.914m vrs 0.950m, although coming in higher than the previous 0.856m. Meanwhile, CPI ex food and energy, month on month reads 1.7% and keeps in line with both consensus and previous. With those sets of benign US data, the market will focus its attention again to what the RBA minutes revealed, which do not bowed well for the Australian dollar in the long run. The RBA minutes for the June 4th meeting read: “inflation outlook might provide some scope for further easing”, “it was possible that the exchange rate would depreciate further over time as the terms of trade declined”. The green light for a weaker AUD. Up next on the list of economic factors to watch out for here comes in the form of FOMC tomorrow
Support seen for AUD/USD
Karen Jones at Commerzbank has said that a negative bias will remain while capped by 0.9792, the current June high. The 0.9388 support represents a major break down point longer term. A close below here will introduce scope to 0.9147, then 0.8550 en route to 0.8068, the 2010 low.