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23 May 2013
AUD/USD comfortable above 0.9680 support
FXstreet.com (London) - The AUD/USD has recovered its tracks from the London open throughout European trading into the NA session. It has gained back 120 on the day so far and is testing key resistance.
The commodity currencies are performing well on the day, but risks to the downside remain for the Aussie. Performance of the Chinese economy is integral to the value of the AUD and in an environment where the market is seeking safe havens in a disorderly setting, fading the pair and selling into rallies could well be the order of the smart money. China is looking pretty soft while the US dollar is seen as the 'safe haven'.
The pair had attempted to breach 0.9725 and failed to accede the pivot point slightly higher. Support is sighted 0.9660 and 0.9600 for last defence before this Nov 2010 long term support line is breached on a third attempt on the monthly charts.
The commodity currencies are performing well on the day, but risks to the downside remain for the Aussie. Performance of the Chinese economy is integral to the value of the AUD and in an environment where the market is seeking safe havens in a disorderly setting, fading the pair and selling into rallies could well be the order of the smart money. China is looking pretty soft while the US dollar is seen as the 'safe haven'.
The pair had attempted to breach 0.9725 and failed to accede the pivot point slightly higher. Support is sighted 0.9660 and 0.9600 for last defence before this Nov 2010 long term support line is breached on a third attempt on the monthly charts.