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21 May 2015
AUD/USD testing 0.790 offers, sell-side dominates
FXStreet (Bali) - AUD/USD caught a bid tone in response to buy-side flows coming through in the New Zealand Dollar market after the release of the NZ budget.
The spike in NZD/USD dragged with it AUD/USD, briefly breaking above 0.79, on the back of a slight miss in China's HSBC PMI, at 49.1 in May vs 49.3 expected.
The Australian Dollar has been one of the notorious underperformers in recent days, with the latest catalyst over the resumption of the bearish tendencies being the re-establishment of an explicit easing bias by the RBA, revealed in the last minutes from Tuesday. Fueling the sell-side has been the broad-based USD buying this week.
From a technical standpoint, most signs still point for the risk skewed to the downside. The main area sellers should keep control of resides between 0.7915/20. As long as the area is not penetrated with price acceptance above, it is safe to assume that this is a market still dominated by the sell-side. On the contrary, a break and hold above the aforementioned area, may allow for 0.7935/40 ahead of 0.7960, a potential move that still needs to be seen within he context or a bearish trend.
The spike in NZD/USD dragged with it AUD/USD, briefly breaking above 0.79, on the back of a slight miss in China's HSBC PMI, at 49.1 in May vs 49.3 expected.
The Australian Dollar has been one of the notorious underperformers in recent days, with the latest catalyst over the resumption of the bearish tendencies being the re-establishment of an explicit easing bias by the RBA, revealed in the last minutes from Tuesday. Fueling the sell-side has been the broad-based USD buying this week.
From a technical standpoint, most signs still point for the risk skewed to the downside. The main area sellers should keep control of resides between 0.7915/20. As long as the area is not penetrated with price acceptance above, it is safe to assume that this is a market still dominated by the sell-side. On the contrary, a break and hold above the aforementioned area, may allow for 0.7935/40 ahead of 0.7960, a potential move that still needs to be seen within he context or a bearish trend.