AUD/USD is like a tennis ball (video)
By Elizaveta Belugina
AUD/USD had an intense week swinging up and down between $0.9400 and $0.9330. On the one hand, risk sentiment has deteriorated by the end of the week due to various global political tensions. On the other hand, economic data from China and Australia were rather good and Australian dollar has done better during the past week versus the greenback than other major currencies.
Levels in the $0.9330/20 area provide good support for Aussie. Australian dollar has the advantage of higher yields – this is what supports the currency so well.
Still, at the upper end of the current triangle in the $0.9400/12 area resistance is rather strong. The bulls need to push the pair above $0.9450 to change the general outlook to positive. The price action which has been taking place since the middle of June still looks like the pair’s topping.
The negative risks may come from the RBA Stevens’ comments. The recent RBA meeting minutes were neutral, but since then there was an increase in trade deficit, a fall in retail sales and an increase in unemployment. A slide below $0.9320/00 will open the way to $0.9220/00.