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1 Oct 2013
AUD/USD holds onto critical correction support at 0.9282 Monday
FXstreet.com (Barcelona) - The AUD/USD rallied well off of session lows to close above the key “correction support” at 0.9282 on Monday. A failure in the US to reach a compromise on the budget and Obamacare may lead to a further decline in the greenback and rise in the AUD/USD.
The risk-off urge to sell the Aussie Dollar was overcome by the urge to dump the US Dollar
The AUD/USD cross sold off initially Monday but managed to rally off the lows and close above “correction support” at 0.9282. The “risk off” trade remained in force overall on Monday, but that was not exactly reflected in the trading action of AUD/USD as the “risk” currency (AUD) rallied and the “safety” currency (USD) sold off. The obvious reason was because of the traders’ lack of interest in being long of Washington, D.C.
AUD/USD traders will also have to account for the Reserve Bank of Australia's interest rate decision and accompanying policy commentary early on Tuesday. Additionally, they will get to digest the US PMI and construction spending data later in the session.
Technical outlook for AUD/USD
The AUD/USD thus far has held key “correction support” at 0.9282. AUD/USD bulls will need to hold firm at that level if they are to have a chance at victory short-term. The next target on the downside if 0.9282 fails is 0.9253. Resistance comes into play at 0.9456.
The risk-off urge to sell the Aussie Dollar was overcome by the urge to dump the US Dollar
The AUD/USD cross sold off initially Monday but managed to rally off the lows and close above “correction support” at 0.9282. The “risk off” trade remained in force overall on Monday, but that was not exactly reflected in the trading action of AUD/USD as the “risk” currency (AUD) rallied and the “safety” currency (USD) sold off. The obvious reason was because of the traders’ lack of interest in being long of Washington, D.C.
AUD/USD traders will also have to account for the Reserve Bank of Australia's interest rate decision and accompanying policy commentary early on Tuesday. Additionally, they will get to digest the US PMI and construction spending data later in the session.
Technical outlook for AUD/USD
The AUD/USD thus far has held key “correction support” at 0.9282. AUD/USD bulls will need to hold firm at that level if they are to have a chance at victory short-term. The next target on the downside if 0.9282 fails is 0.9253. Resistance comes into play at 0.9456.