FXstreet.com (San Francisco) - After a 25-pip gap higher at the weekly open, driven by positive Chinese trade data, AUD/USD has lost the upside advantage and is now back near the 1.0230 mark where it closed Friday.
The pair has come under slight pressure ahead of regional stock market openings, weighed by RBA rate cut expectations. Stocks are likely to hold a positive bias today in Asia after the weekend’s China data, but may find selling interest following Wall Street’s mostly lower close on Friday.
Speaking technically about AUD/USD, “Although the pair found a bottom at 1.0150 past week, the former recovery was unable to extend beyond the 1.0300 area, which suggest bears are still interested,” says Valeria Bednarik, Chief Analyst at FXstreet.com. “Below 1.0200, short term bearish momentum should increase with a break below 1.0150 opening doors for a test of parity during this week.”
Australian housing figures for August are due for release at 00:30 GMT, then China’s CPI reading for September is on offer at 01:30 GMT, which will be today’s key risk event for AUD. The AUD is sensitive to China data given the two nations’ close trade ties.
Worthy of note, AUD/USD continues to trade around the 38.2% Fibonacci retracement level of the advance from 0.9580 to 1.0622, and price continues to trade above the 100-weekly EMA (1.0115).
The pair has come under slight pressure ahead of regional stock market openings, weighed by RBA rate cut expectations. Stocks are likely to hold a positive bias today in Asia after the weekend’s China data, but may find selling interest following Wall Street’s mostly lower close on Friday.
Speaking technically about AUD/USD, “Although the pair found a bottom at 1.0150 past week, the former recovery was unable to extend beyond the 1.0300 area, which suggest bears are still interested,” says Valeria Bednarik, Chief Analyst at FXstreet.com. “Below 1.0200, short term bearish momentum should increase with a break below 1.0150 opening doors for a test of parity during this week.”
Australian housing figures for August are due for release at 00:30 GMT, then China’s CPI reading for September is on offer at 01:30 GMT, which will be today’s key risk event for AUD. The AUD is sensitive to China data given the two nations’ close trade ties.
Worthy of note, AUD/USD continues to trade around the 38.2% Fibonacci retracement level of the advance from 0.9580 to 1.0622, and price continues to trade above the 100-weekly EMA (1.0115).
