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18 Oct 2013
AUD/USD eases on profit-taking after a week of stellar gains
FXstreet.com (Athens) – The AUD/USD is trading slightly downwards on Friday after a week of sharp gains –precisely after seven consecutive “green” days of high gains – mainly due to a slight profit-taking amidst one more typical lethargic Friday.
AUD/USD in a tight range as of 0.9605-0.9638 amidst a typical lethargic Friday session
The AUD/USD is slightly under pressure since the kick off of the Asian opening session but still is moving congested within a tight range. Market participants should not be taken aback by the slight corrective pullback of the cross. First of all, we were witnessed seven straight days of stellar gains and to be more précised the cross - hovering now at 0.9620 - has almost gained a not modest at all 9% (nearly 800 pips from its early August low as of 0.8847). To elaborate on the 5th August low as of 0.8847 it is almost a 3-year low, therefore the cross we have been witnessing more than a solid boost; it’s plausible that the Aussie does seem a bit tired. Secondly, RBA Governor Glenn Stevens said he believes that a lower “Aussie” would certainly help economy, though he didn’t seem to be very concerned about “Aussie’s” recent sharp gains. All in all, it is more than obvious that while the cross hit the area as of 0.9640, market traders closed their positions on profit-taking; also investors should bear in mind that the skyrocketing of both EUR/AUD, GPB/AUD at the whole Asian session wounded immensely the “Aussie”, dragging down the cross.
Technical Aspects and Strategic Bias on the AUD/USD
The AUD/USD enjoyed a mini – rally last week mostly on the resolution of the US political circus but also on the broadly and constantly growing view that the RBA will not proceed with any rate cuts at least, soon. On the other hand, while everybody had been betting on “Fed’s tapering”, under the new political drama the tapering will come probably “later” than “sooner.” Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”
AUD/USD in a tight range as of 0.9605-0.9638 amidst a typical lethargic Friday session
The AUD/USD is slightly under pressure since the kick off of the Asian opening session but still is moving congested within a tight range. Market participants should not be taken aback by the slight corrective pullback of the cross. First of all, we were witnessed seven straight days of stellar gains and to be more précised the cross - hovering now at 0.9620 - has almost gained a not modest at all 9% (nearly 800 pips from its early August low as of 0.8847). To elaborate on the 5th August low as of 0.8847 it is almost a 3-year low, therefore the cross we have been witnessing more than a solid boost; it’s plausible that the Aussie does seem a bit tired. Secondly, RBA Governor Glenn Stevens said he believes that a lower “Aussie” would certainly help economy, though he didn’t seem to be very concerned about “Aussie’s” recent sharp gains. All in all, it is more than obvious that while the cross hit the area as of 0.9640, market traders closed their positions on profit-taking; also investors should bear in mind that the skyrocketing of both EUR/AUD, GPB/AUD at the whole Asian session wounded immensely the “Aussie”, dragging down the cross.
Technical Aspects and Strategic Bias on the AUD/USD
The AUD/USD enjoyed a mini – rally last week mostly on the resolution of the US political circus but also on the broadly and constantly growing view that the RBA will not proceed with any rate cuts at least, soon. On the other hand, while everybody had been betting on “Fed’s tapering”, under the new political drama the tapering will come probably “later” than “sooner.” Robert Rennie Head Analyst on behalf of Westpak suggests that “A range of positioning indicators suggest USD downside is increasingly well owned. Westpac's client flow data for example shows that almost the entire decline in AUD exposure through May-July has now been unwound. This suggests further upside need not be that potent. My best guess on the near term future is that AUD still has potential to move to 0.97.”