OctaFX | OctaFX Forex Broker
Open trading account
Back

AUD/USD remains capped below 0.7600 on Aus data, politics

  • DXY, USTs remain pressured post-Yellen’s comments.
  • Little impressed by Aus Q3 construction work headline beat.
  • Australia’s politics limit the upside.
  • Eyes on FOMC minutes.

The AUD/USD pair attempted a minor bounce in early trades and jumped sharply to test 0.76 handle in a knee-jerk reaction to a huge beat seen in the Australian Q3 construction output headline figures.

Australia Construction Work Done came in at 15.7%, above expectations (-2.1%) in 3Q

However, the pop in the Aussie soon faded and the rates reversed to hit fresh daily lows of 0.7573. At the time of writing, the spot meanders near the daily lows, with the bulls trying hard to defend the bids, as the latest Australian political headlines keep further upside in check.

Australia’s Senator Kakosche-Moore quits over dual citizenship

Despite, the stalled upside, the sentiment around the Aussie remains somewhat buoyed amid higher Asian equities and broad-based US dollar softness, in the wake of the weaker Treasury yields after the latest cautious remarks from the Fed Chair Yellen on the inflation outlook.

Further, yesterday’s comments from the RBA Governor Lowe on the rate hike outlook, also continue to lend support to the AUD bulls. Mr. Lowe said that it’s more likely that the next move in the interest rates is up rather than down.

Attention now turns towards the US durable goods data and FOMC minutes release for fresh impetus on the USD, which will eventually impact the Aussie.

AUD/USD Levels to consider

According to Jim Langlands at FX Charts, “the Aud has actually made a key day reversal after making a new trend low at 0.7531 and if we do head higher, back above the session high will find the next resistance at 0.7605/10, at 0.7620 and at 0.7640. I doubt we go close to the top end of this today, but if wrong, a break of the trend resistance could then revisit the 13 Nov high of 0.7665, above which would then allow room to move towards 0.7675/80 and possibly 0.7695/0.7700.”

“The downside will find minor support at 0.7550 ahead of the stronger 0.7530/35, area, which will continue to be strong, but below which would target Fibo support at around 0.7515, a break of which would then look towards 0.7485 and 0.7460/70 (Rising trend support),” Jim added.

Japan PM Abe: Society demands that companies raise wages

Japanese PM Abe is reportedly quoted by Reuters, as saying that the society demands that companies raise wages, in his speech before the Parliament.
Read more Previous

UN Command: North Korean troops violated the Korean Armistice Agreement

Comments crossed the wires from the US-led United Nations Command (UNC), with regard to the last week’s event, when a North Korean soldier crossed the
Read more Next
Start livechat