Currency Analyst since 2010

AUD/USD is probing Friday's low

AUD/USD was trading just below $0.9390 earlier in the day as industrial output growth unexpectedly accelerated in China, Australia’s biggest trading partner, and domestic home loans increased. Then, however, Aussie slipped down approaching Friday’s minimum at $0.9355.

AUD is trading below the 55-day MA and that’s a bearish start of the week. The bears will dominate until the pair is below last week’s high at $0.9542.

Support lies at $0.9350, $0.9333, $0.9300/9290 (psychological level, daily Ichimoku Cloud top) and $0.9382 (Sept. 30 low).

Note that AUD is vulnerable for a decline in case of positive US data. According to NAB, “one more good report could see the Fed begin reducing its bond purchases as early as its 17-18 December meeting” making investors buy USD. On the Australian part, watch for NAB business confidence due tomorrow at 00:30 GMT.

Chart. Daily AUD/USD

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