AUD Trading Outlook
Australian Dollar (AUD) the AUD/USD soared to 1.2080 after the CAPEX data showed mining data was stronger than forecast defying pessimist predictions of a crash in investment. The AUD/USD rally was briefly however as USD strength and technical resistance held strong and we ended back at the 1.0225 support level. Update Chinese PMI at 50.1 vs. 50.2 forecast.
Australian Dollar (AUD) was under pressure for most of the day but when the sellers failed to kick lower after breaking through 1.0200 we rebounded to 1.0230. The market was caught short today and we have seen a sharp rally to 1.0280 even with some weak Q4 CAPEX numbers from last year. Once again the Yen cross AUD/JPY was the main source of support and we are back at Y95 after testing Y93 overnight. Update Q4 Australian CAPEX at -1.2% vs. 1.0% forecast.
. Australian Dollar (AUD) the AUD/USD fell through 1.0225 range support but the bears party was stopped at 1.0200 with some very large orders from local banks and presumed option protection buyers from a large sovereign presumed to be china held the figure intact. The market tried for the 1.0200 level again today but ran into the same strong support. S&P affirmed the AAA rating during the Asian session but some focus was made on the warnings in the report about looming issues. Looking ahead, Japanese Industrial output forecast at 1.5% vs. 2.4% previously. Also Q4 CAPEX forecast at 1% vs. 2.8% previously.
Australian Dollar (AUD) the Aussie was able to ignore the volatility with the usually risk sensitive currency sidelined even with the collapse of the AUD/JPY cross. EUR/AUD selling was the main support but also the hawkish Governor Stevens talk last week still underpinning with the RBA seen unlikely to cut next Tuesday.
Australian Dollar (AUD) the AUD/USD topped out at 1.0340 on Friday on the back of strong buying after RBA Governor Stevens talked up the Australian economy and played down the high AUD. This is stark contrast to the currency wars seen around the globe lately. AUD/JPY surged this morning and is helping to keep the AUD/USD bears in check. Looking ahead, no economic data.
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