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22 Apr 2014
AUD/USD: Bids slowly absorbing 0.9335/40 offers
FXStreet (Bali) - AUD/USD is pressing against the area of resistance 0.9335/40 in early Tokyo.
A downward trendline coming off April 14 high presently limiting a further AUD recovery, although lack of downside pressure may suggest the short term market intentions are to break higher in order to test higher quotes at 0.9350.
According to Jim Langlands, Founder at FXCharts: "I think we are in for a day of 0.9300/50 in the absence of any major data as the market waits for tomorrows Q1 CPI (3.2% yy exp vs 2.7% prev (trimmed mean exp @2.9% yy – previous 2.6%))."
On the key Aus CPI outcome, Langlands adds that "the expected number is a strong one and if correct could see new bids arrive to support the Aud as any thoughts of an RBA rate cut disappear over the horizon, while on the other hand, a soft number will see the pressure build on the downside..."
A downward trendline coming off April 14 high presently limiting a further AUD recovery, although lack of downside pressure may suggest the short term market intentions are to break higher in order to test higher quotes at 0.9350.
According to Jim Langlands, Founder at FXCharts: "I think we are in for a day of 0.9300/50 in the absence of any major data as the market waits for tomorrows Q1 CPI (3.2% yy exp vs 2.7% prev (trimmed mean exp @2.9% yy – previous 2.6%))."
On the key Aus CPI outcome, Langlands adds that "the expected number is a strong one and if correct could see new bids arrive to support the Aud as any thoughts of an RBA rate cut disappear over the horizon, while on the other hand, a soft number will see the pressure build on the downside..."