OctaFX | OctaFX Forex Broker
Open trading account
Back

AUD/USD: Capex-inspired rally short-lived, bears take back control

FXStreet (Bali) - AUD/USD's bear momentum is extending in the transition between NY and Tokyo, last at 0.8515, with liquidity being thinner-than-usual on Thanksgiving.

While Australia's Capex numbers on Thursday were quite impressive, resulting in a renewed optimism for a more balanced economic transition from the mining era, likely to put a smile in RBA's Governor Stevens face, the axiom 'the trend is your friend' should apply in the AUD/USD. As technicals stand, it is not that surprising to see AUD bears having taken back control, reinforcing, if anything, the negative sentiment towards the Aussie, as it is fails to rally on good news.

Valeria Bednarik, Chief Analyst at FXStreet, notes: "The shy recovery quickly reversed left a bearish tone in the 1 hour chart, as price develops below a flat 20 SMA whilst momentum heads strongly south below 100 and RSI also heads lower around 44. In the 4 hours chart price battles below a strongly bearish 20 SMA, while indicators erased all of the oversold readings reached on Wednesday, but failed to favor the upside: momentum stalled right below 100 and RSI turns back south. The daily low stands at 0.8530 now the immediate short term support, with a break below exposing the pair to a retest of recent lows in the 0.8470 price zone"

AUD/NZD consolidated into month end on weekly lows

AUD/NZD is trading at 1.0851, down -0.13% on the day, having posted a daily high at 1.0874 and low at 1.0845.
Read more Previous

South Korea Service Sector Output increased to 0.8% in October from previous 0.1%

Read more Next
Start livechat