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AUD/USD slips below 0.9600 handle

FXstreet.com (London) -

The AUS/USD has slipped below the 0.9600 handle in early London shift testing the support line 0.9580 is a decisive move with momentum to possibly break out towards the lows of the week, 0.9520.

‘’AUD/USD has so far seen only a shallow rebound, it is not clear to us yet how far the corrective rally will go and we are only prepared to hold onto some shorts below .9845. The daily RSI has not confirmed the .9528 low charted recently and we would allow for some near term consolidation ahead of further losses. ‘’ said Karen jones at Commerzbank.

She added, ‘Currently the market will remain directly offered below .9780/.9842 (23.6% retracement of the sell off since April) and only above here would initiate a deeper retracement to .9970. The cloud resistance on the 240 minute chart at .9701/56 should offer further resistance intraday. The market has recently fallen into 19 month lows and beyond a small rebound we look for another leg lower to .9404/.9388, the inter-year pivot and our medium term downside target.’

Data wise, Private Sector Credit in Australia rose 0.3% MoM and 3.1% on a yearly basis, bettering the median. In light of the recent CAPEX figures and the prospects of higher spending by companies in 2013-14, Strategist Spiros Papadopoulos at NAB expressed “NAB believes that these expectations for next year are far too optimistic, especially mining
spending which is already weakening. NAB expects business investment to fall around 2% in 2013-14, keeping the pressure on the RBA to cut again later this year”. Next week we see the all important NFP numbers, and if anything will rock the market, this will in light f recent FED rhetoric around the labour market again.

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