FXstreet.com (San Francisco) - After opening around 20 pips above Friday’s closing price, AUD/USD has since lost the early advantage and has ticked down into the 1.0525 price zone. But, in the long-run, Australian dollar bulls have reason to be encouraged after Australian Treasurer Wayne Swan said Saturday in a weekly economic address: “One cause of optimism is recent evidence that China’s economy appears to be stabilizing after economic conditions moderated in 2012.” Should market sentiment indeed improve and fuel optimism for a stronger global economic recovery in the year ahead, AUD would simultaneously find its way higher given China and Australia’s close economic relationship. Australian housing and job advertisement figures are on the economic docket today at 00:30 GMT; the market is expecting a 0.3% rise in home loan approvals for November.
Giving her technical assessment of AUD/USD, Valeria Bednarik
, Chief Analyst at FXstreet.com observes: “The hourly chart shows 20 SMA heading lower above current price, while indicators head south in negative territory, advancing a deeper fall. In the 4 hours chart, technical readings also turn negative, yet only a break below 1.0490 will favor more intraday losses, towards the 1.0400/30 price zone.”
AUD/USD last trades at 1.0530, with support levels noted at 1.0520, and beyond the mentioned 1.0490 mark, there may be a layer of bids around 1.0460 to take out before any test of the 1.04 figure. To the upside, resistance levels may be found at 1.0550, 1.0600 and 1.0660.