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6 May 2013
Forex: AUD/USD testing lows around 1.0270/75
FXstreet.com (Barcelona) - The Aussie dollar is extending its intraday decline on Monday, posting fresh lows around 1.0270/75 after climbing to the area of 1.0320 overnight.
Poor Chinese data from the HSBC Services PMI in April plus the 0.4% monthly contraction of the domestic Retail Sales and modest inflation readings have been weighting on the cross ahead of tomorrow’s RBA gathering.
“I think they cut 25bps. I had been thinking they’d wait for CAPEX Data at end-May but I look around and see most people making the same statement. If it’s that obvious the CAPEX will be weak and the trigger for a cut, why wait and react? And the strong AUD is still there as a factor”, assessed Adrian Foster, Analyst at Rabobank.
At the moment, the cross is down 0.32% at 1.0274 and a break below 1.0240 (low May 3) would open the door to 1.0221 (low Apr.23) and finally 1.0202 (low Mar.11).
On the other hand, resistance levels line up at 1.0330 (low Apr.30) ahead of 1.0344 9MA55d) and then 1.0352 (MA21d).
Poor Chinese data from the HSBC Services PMI in April plus the 0.4% monthly contraction of the domestic Retail Sales and modest inflation readings have been weighting on the cross ahead of tomorrow’s RBA gathering.
“I think they cut 25bps. I had been thinking they’d wait for CAPEX Data at end-May but I look around and see most people making the same statement. If it’s that obvious the CAPEX will be weak and the trigger for a cut, why wait and react? And the strong AUD is still there as a factor”, assessed Adrian Foster, Analyst at Rabobank.
At the moment, the cross is down 0.32% at 1.0274 and a break below 1.0240 (low May 3) would open the door to 1.0221 (low Apr.23) and finally 1.0202 (low Mar.11).
On the other hand, resistance levels line up at 1.0330 (low Apr.30) ahead of 1.0344 9MA55d) and then 1.0352 (MA21d).