FXstreet.com (San Francisco) - AUD/USD reached a 5-day high of 1.0472 in earlier trade as market participants cheered the Spanish budget release, but the day’s Spanish bank stress test results and risk of a downgrade by Moody’s has weighed heavily on risk sentiment currencies like the Australian dollar.
The pairing has fallen sharply from the mentioned highs to shed nearly all gains made overnight, managing to trigger stops through 1.0372 in North America today. Global growth concerns are also weighing on AUD and are boosting the U.S. dollar across the board.
At the time of writing, AUD/USD is set to end the week, month and quarter in the 1.0390 price zone, still holding above the 21-month EMA as the order of moving averages diverge and aim higher. To the downside, support is noted at 1.0325 (Sep 26 low); below there, a test of support at 1.0222 (June 20 high) may be in store. Upside rallies may encounter resistance at 1.0430 (Aug 2 low).
The pairing has fallen sharply from the mentioned highs to shed nearly all gains made overnight, managing to trigger stops through 1.0372 in North America today. Global growth concerns are also weighing on AUD and are boosting the U.S. dollar across the board.
At the time of writing, AUD/USD is set to end the week, month and quarter in the 1.0390 price zone, still holding above the 21-month EMA as the order of moving averages diverge and aim higher. To the downside, support is noted at 1.0325 (Sep 26 low); below there, a test of support at 1.0222 (June 20 high) may be in store. Upside rallies may encounter resistance at 1.0430 (Aug 2 low).
