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4 Sep 2015
AUD/USD: at lower end of 0.70 handle before Nonfarm Payrolls
FXStreet (Guatemala) - AUD/USD has resumed the lower end of the 0.70 handle ahead of the Nonfarm Payrolls and Fed speak at the end of the Asian session for today.
AUD/USD had a rally through the hourly 50 SMA in a relatively volatile session after the ECB made some bearish announcements centred around the global economy and effects to their growth and inflation forecasts.
However, the catalyst for the move in the Aussie came from a short-term bull market in commodities, although the profits were partially wiped off the board shortly after and the spike soon faded, leaving 0.7062 highs back in the distance.
The markets in the US closed in the green with the S&P at 1,951.13 +0.12% by 4:15PM EDT, while futures currently trade at 1,946.75 +0.50 +0.03%. We will see if we can't improve on the Nikkei 225's close yesterday of +86.9918,182.39 +0.48%. China is out still but Hong Kong returns.
It might be expected to a quiet Asian session as markets prefer to wait and see the outcome of tomorrow, while the CME fund futures are pricing in a 27% probability of a Fed hike this September, down from yesterday's 38%, supporting the Aussie in general.
AUD/USD bulls committed at 0.7000
This has been a well-protected area of support, despite the series of weak data from the economy, including the GDP and retail sales numbers of yesterday's business where the price dropped, but held just shy of the figure. To the downside, if 0.7000 gives out again, bears need a break below the 0.6980 level and closes below this 3-month support line ahead of the June 2004 lows at 0.6776.
AUD/USD had a rally through the hourly 50 SMA in a relatively volatile session after the ECB made some bearish announcements centred around the global economy and effects to their growth and inflation forecasts.
However, the catalyst for the move in the Aussie came from a short-term bull market in commodities, although the profits were partially wiped off the board shortly after and the spike soon faded, leaving 0.7062 highs back in the distance.
The markets in the US closed in the green with the S&P at 1,951.13 +0.12% by 4:15PM EDT, while futures currently trade at 1,946.75 +0.50 +0.03%. We will see if we can't improve on the Nikkei 225's close yesterday of +86.9918,182.39 +0.48%. China is out still but Hong Kong returns.
It might be expected to a quiet Asian session as markets prefer to wait and see the outcome of tomorrow, while the CME fund futures are pricing in a 27% probability of a Fed hike this September, down from yesterday's 38%, supporting the Aussie in general.
AUD/USD bulls committed at 0.7000
This has been a well-protected area of support, despite the series of weak data from the economy, including the GDP and retail sales numbers of yesterday's business where the price dropped, but held just shy of the figure. To the downside, if 0.7000 gives out again, bears need a break below the 0.6980 level and closes below this 3-month support line ahead of the June 2004 lows at 0.6776.