Investors have brushed aside a surprisingly large drop in Home Loans data. Higher RBA rates are clearly finding their way into the real economy with lenders cutting back on loans for home sales. Regardless, the AUD/USD has broken free of our 2nd tier downtrend line as the EUR/USD, gold, and the Cable all move higher, a sign that investors are getting more comfortable with the risk trade. A pop beyond our 2nd tier downtrend line is an encouraging development since it runs through the .9275 level. Hence, the Aussie could be position for further near-term gains should tomorrow's economic data print favorably. Australia will release its Employment Change and Unemployment Rate figures and the data will be closely monitored by the RBA in regards to its future monetary policy. Should employment continue to improve, the RBA could feel comfortable maintaining its comparatively tight monetary policy stance. China will release another key data set tomorrow and strong numbers could help send the Aussie higher in anticipation of higher demand for Australia's commodities. Speaking of China, today's Trade Balance data revealed an encouraging increase in imports, a positive sign for the Aussie. The U.S. will release its own Trade Balance data tomorrow along with weekly Unemployment Claims. Hence, activity in the FX markets could pick up over the next 24 hours.
Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 3/9lows, and the psychological .90 area. As for the topside, the Aussie has our 3rd and 4th downtrend lines serving as technical barriers along with the psychological .92 area. Additionally, previous 2010 highs could serve as a hefty technical barrier should they be tested.
Price: .9179
Resistances: .9194, .9213, .9224, .9236, .9250, .9268
Supports: .9171, .9160, .9146, .9134, .9120, .9104
Psychological: .92, 2010 highs
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Disclaimer: FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. There is a substantial risk of loss in trading futures and foreign exchange. © Fast Trading Services, LLC. All materials are proprerty of Fast Trading services, LLC and unless otherwise indicated,any unauthorised reproduction is prohibited.
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