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3 Mar 2014
AUD/USD knocked down below 0.89, Ukraine weighs
FXStreet (Bali) - AUD/USD broke below the important 0.89 support in interbank trading, with the rate reaching its lowest level at 0.8891.
AUD volume soars, Ukraine/China PMI weigh
Reuters is reporting volume in the AUD/USD four times higher than usual at this time, as the Ukraine/Russian conflict escalates by the minute and China shows a weakening PMI, with this weekend's reading barely above 50. Other than Australian economic releases, China is usually the main driver for the AUD in Asia, however, ongoing geopolitical tensions in Ukraine have taken center stage globally, and unless there are immediate signs of diplomatic reconciliation between the two countries, Asian equity markets will likely track the risk off environment from late US Friday, causing the AUD to remain under pressure.
AUD/UD technical outlook
Technically, according to Valeria Bednarik, Chief Analyst at FXStreet: "The hourly chart shows 20 SMA with a strong bearish slope above current price and turning south, while indicators accelerated lower below their midlines, supporting some further falls; in the 4 hours chart technical readings also present a bearish tone, with a break below 0.8870 static support level, favoring a slide towards key 0.8820 strong midterm support."
AUD volume soars, Ukraine/China PMI weigh
Reuters is reporting volume in the AUD/USD four times higher than usual at this time, as the Ukraine/Russian conflict escalates by the minute and China shows a weakening PMI, with this weekend's reading barely above 50. Other than Australian economic releases, China is usually the main driver for the AUD in Asia, however, ongoing geopolitical tensions in Ukraine have taken center stage globally, and unless there are immediate signs of diplomatic reconciliation between the two countries, Asian equity markets will likely track the risk off environment from late US Friday, causing the AUD to remain under pressure.
AUD/UD technical outlook
Technically, according to Valeria Bednarik, Chief Analyst at FXStreet: "The hourly chart shows 20 SMA with a strong bearish slope above current price and turning south, while indicators accelerated lower below their midlines, supporting some further falls; in the 4 hours chart technical readings also present a bearish tone, with a break below 0.8870 static support level, favoring a slide towards key 0.8820 strong midterm support."