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5 Mar 2014
AUD/USD rejected at 0.9000
FXStreet (Edinburgh) - The Aussie dollar is now looking to stabilize in the area of 0.8955/60 on Wednesday, after the AUD/USD failed to break above the critical barrier at 0.9000 earlier.
AUD/USD boosted by GDP data
The pair was propelled to the vicinity of the 0.9000 handle in the wake of the release of the Q4 GDP figures, showing that the economic activity in Oz expanded 0.8% inter-quarter and 2.8% on a yearly basis. “The negativity around the Australian economy is looking over-done and upward pressure on rates is likely… It appears that the market is sitting on short positions established around .90 over the last month… The risk is high that the AUD rises above .91 in the near term to squeeze shorts”, observed Greg Gibbs, FX Trading Strategist at RBS.
AUD/USD levels to watch
At the moment the pair is up 0.08% at 0.8960 with the next resistance at 0.8997 (high Mar.5) ahead of 0.9000 (psychological level) and then 0.9026 (high Feb.26). On the flip side, a breakdown of 0.8891 (low Mar.3) would aim for 0.8873 (low Feb.5) and finally 0.8730 (low Feb.4).
AUD/USD boosted by GDP data
The pair was propelled to the vicinity of the 0.9000 handle in the wake of the release of the Q4 GDP figures, showing that the economic activity in Oz expanded 0.8% inter-quarter and 2.8% on a yearly basis. “The negativity around the Australian economy is looking over-done and upward pressure on rates is likely… It appears that the market is sitting on short positions established around .90 over the last month… The risk is high that the AUD rises above .91 in the near term to squeeze shorts”, observed Greg Gibbs, FX Trading Strategist at RBS.
AUD/USD levels to watch
At the moment the pair is up 0.08% at 0.8960 with the next resistance at 0.8997 (high Mar.5) ahead of 0.9000 (psychological level) and then 0.9026 (high Feb.26). On the flip side, a breakdown of 0.8891 (low Mar.3) would aim for 0.8873 (low Feb.5) and finally 0.8730 (low Feb.4).