AUD/USD in now quoted near the bottom end of its narrow 1.0122-44 in intraday range so far this Friday. Overnight the pair closed down 1% after falling and finding bids at the 1.0100 figure, pushed lower after soft Australian jobs data supported the case for more RBA interest rate cuts and global growth concerns.
Despite the recent news regarding the Italian downgrade by Moody’s, the market is relatively calm and may remain so as traders will likely be hesitant to commit large positions ahead of the release of Chinese data later in the day.
“Expect selloff to begin once below 1.0070, 38.2% retracement of this year slide, while recoveries should not extend beyond the 1.0220 key Fibo resistance level,” comments Valeria Bednarik, Chief Analyst at FXstreet.com.
At the time of writing, AUD/USD is threatening to push onto lower ground as Japanese banks digest news and take their positions at the opening of trade in Tokyo. Ms. Bednarik identifies levels of support at the mentioned 1.0100 mark, 1.0070 and 1.0035, while resistance levels lie at 1.0140, 1.0170 and 1.0220.