AUD/USD: up, but on shaky grounds
AUD/USD rose today to 2-week high at $0.9305 after the Fed’s Chairman Ben Bernanke signaled there would be no immediate reduction in US stimulus. Analysts still aren’t sure about how to evaluate this comment: many think that the market has overreacted and USD will keep strengthening versus its counterparts.
As for the news from Australia, the nation’s economy unexpectedly added workers in June, while the unemployment rate rose by 5.7%, the highest in nearly 4 years. Analysts at Westpac point out that the growth in employment was due to the increase in jobs part timers, while employers cut back on full time workers. The specialists expect the RBA cut in August.
Aussie retreated from highs to levels just above $0.9200 at the moment of writing. We stick to the cautious view and believe that AUD/USD is having nothing more than a correction within the general downtrend.
Resistance lies at $0.9300, $0.9325, $0.9350 and $0.9400. Support is at $0.9180, $0.9145 and $0.9040.
Chart. Daily AUD/USD