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AUD/USD coming with a bearish bias

FXStreet (Guatemala) - AUD/USD is trading at 0.8847, up 0.07% on the day, having posted a daily high at 0.8850 and low at 0.8839.

Analysts at RBS explained that China's manufacturing PMI was a little better in September, but still soft in a wider context. “This plays to the view that there's simply very little inflationary pressure around due to weak demand. Hence plenty of opportunities for Fed expectations to shift, but a stronger USD still looks a solid multi-month buy”. In respect of the Aussie’s strength yesterday in Asia where it made it onto the 0.89 handle through 0.8920 as after big moves, they explained, there’s always a bit of bottom fishing. Meanwhile, Valeria Bednarik explained that the 4 hour chart was showing a strong bearish momentum into the US closing hours, all of which support further falls for today in Asia. “Short term, price may extend down to 0.8770 on a break but eyeing an extension down to 0.8600 area for the upcoming days” she explained.

AUD/USD data risk

The RBA releases its semi-annual Financial Stability Review later on. Analysts at RBS explained that of note will be any hints over whether the RBA is considering reintroducing macro-prudential measures to cool the housing market. “Governor Stevens may also use a speech this Thursday to further the debate on macro-prudential measures. With a more coordinated downturn in commodities and increasing risk of macro-prudential measures in Australia, we see risks biased toward a further decline in AUD”.

AUD/USD support and resistance levels

Support levels: 0.8830 0.8800 0.8770

Resistance levels: 0.8865 0.8920 0.8950

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