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8 Oct 2013
AUD/USD hovering in a range bound territory
FXstreet.com (Athens) – The AUD/USD has been trading slightly upwards since the start of the Asian’s trading session, but mostly moving inside a very tight range of trading area showing that the “Aussie” needs the end of the Washington Muppet show to move further upwards.
AUD/USD trapped in range trading; awaiting the end of the Washington Muppet Show to move further upwards
The AUD/USD surely boosted by the solid Australian data released earlier, managed to drive itself at higher levels as of 0.9447. Elaborating on, Australian confidence was boosted to its highest level in 3½ years i.e. (+12 versus +6 prior), with business conditions also upbeat (-4 versus -6 prior), yet at a more subdued level – with employment poor. One of the major reasons that employment reading was very soft was that many jobs created the last couple of months was strictly temporarily-election hiring. Still, the main problem pertaining to “Aussie” seems to be rather the US fiscal budget impasse than the Australia data. As long as the widely know correlations of “risk-on” and “risk-off” conditions reemerge vastly “in play”, it would be really harsh for the Aussie to climb higher amidst the US fiscal melodrama.
Technical Outlook
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “AUD/USD charted an almost replica session leaving the outlook unchanged. The market last week tested, held and bounced off its 38.2% retracement support at .9283 and looks capable of retesting the
38.2% retracement and recent high at .9510/25.”
AUD/USD trapped in range trading; awaiting the end of the Washington Muppet Show to move further upwards
The AUD/USD surely boosted by the solid Australian data released earlier, managed to drive itself at higher levels as of 0.9447. Elaborating on, Australian confidence was boosted to its highest level in 3½ years i.e. (+12 versus +6 prior), with business conditions also upbeat (-4 versus -6 prior), yet at a more subdued level – with employment poor. One of the major reasons that employment reading was very soft was that many jobs created the last couple of months was strictly temporarily-election hiring. Still, the main problem pertaining to “Aussie” seems to be rather the US fiscal budget impasse than the Australia data. As long as the widely know correlations of “risk-on” and “risk-off” conditions reemerge vastly “in play”, it would be really harsh for the Aussie to climb higher amidst the US fiscal melodrama.
Technical Outlook
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “AUD/USD charted an almost replica session leaving the outlook unchanged. The market last week tested, held and bounced off its 38.2% retracement support at .9283 and looks capable of retesting the
38.2% retracement and recent high at .9510/25.”