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6 Aug 2013
AUD/USD, irrational exuberance?
FXstreet.com (Chicago) - AUD/USD climbed despite weaker-than-expected housing trade balance and jobs data.
Price action displayed a major spike as market participants pushed the pair higher on publication of trade balance data that failed to match projections as it was 602M vs. 800M Australian dollars. Along similar patterns of behavior, a -6.8% growth vs. previous -1.8% in ANZ Job Advertisements lifted the Aussie to new summits as it continued to strengthen against the greenback to trade at 0.8937 daily high.
The erratic price action behaviour is in line with earlier warningthat playing the AUD from the short side might start to feel a trade too crowded. However, the dangers of getting burn out by playing long ahead of the RBA are still high.
On outlook for the RBA’s monetary policy decision, speculators attempt to predict the direction of the pair as it currently trades at 0.8927 between supports at 0.8924 (August 4th highs), 0.8907 (May 23, 2010 highs) ahead of 0.8887 (August 1st lows) and resistances at 0.8945 (July 31st lows), 0.8954 (February 2010 lows) followed by 0.8970 (August 2nd highs). The FXstreet trend index reported the pair as slightly bullish with a MACD indicator pointing up on a one-hour timeframe analysis.
Price action displayed a major spike as market participants pushed the pair higher on publication of trade balance data that failed to match projections as it was 602M vs. 800M Australian dollars. Along similar patterns of behavior, a -6.8% growth vs. previous -1.8% in ANZ Job Advertisements lifted the Aussie to new summits as it continued to strengthen against the greenback to trade at 0.8937 daily high.
The erratic price action behaviour is in line with earlier warningthat playing the AUD from the short side might start to feel a trade too crowded. However, the dangers of getting burn out by playing long ahead of the RBA are still high.
On outlook for the RBA’s monetary policy decision, speculators attempt to predict the direction of the pair as it currently trades at 0.8927 between supports at 0.8924 (August 4th highs), 0.8907 (May 23, 2010 highs) ahead of 0.8887 (August 1st lows) and resistances at 0.8945 (July 31st lows), 0.8954 (February 2010 lows) followed by 0.8970 (August 2nd highs). The FXstreet trend index reported the pair as slightly bullish with a MACD indicator pointing up on a one-hour timeframe analysis.