Commodity currencies posted impressive recoveries against the greenback after the knee jerk suffered post FOMC. In fact, NZD/USD trades above past Thursday high, currently around 0.8350. AUD/USD recovery however, continues to find sellers in the 1.0500/20 area. The level has turned into a key resistance, but is far from discouraging Aussie buyers: the pair has surged too fast from the 1.0390/1.0400 area to even consider the upward pressure is over.
With stocks and commodities trading in red today, both currencies maintain intraday gains: the AUD/USD, will likely continue consolidating in the 1.0460/1.0510 area, ahead of early Tuesday Australian Trade Balance. The report is big enough to move the pair beyond recent highs if numbers surprise to the upside, a break of recent highs will advance an upward continuation towards the 1.0580/1.0600 price zone. Dips up to 1.0380 should be consider buying opportunities, and only below 1.0330 the upward trend will be challenged.
NZD/USD will also benefit from positive AUD numbers, or suffer with negative ones. Trading with a strong intraday upward momentum, an extension beyond 0.8400 will open doors for a test of the strong static resistance level at 0.8470; the pair has been unable to break above since August 2011. Expect limited pullbacks from the level, and a 100 pips straight run up if broken. With short term supports at 0.8330 and 0.8280, the pair can fall up to 0.8220 without jeopardizing current bullish midterm trend.
With stocks and commodities trading in red today, both currencies maintain intraday gains: the AUD/USD, will likely continue consolidating in the 1.0460/1.0510 area, ahead of early Tuesday Australian Trade Balance. The report is big enough to move the pair beyond recent highs if numbers surprise to the upside, a break of recent highs will advance an upward continuation towards the 1.0580/1.0600 price zone. Dips up to 1.0380 should be consider buying opportunities, and only below 1.0330 the upward trend will be challenged.
NZD/USD will also benefit from positive AUD numbers, or suffer with negative ones. Trading with a strong intraday upward momentum, an extension beyond 0.8400 will open doors for a test of the strong static resistance level at 0.8470; the pair has been unable to break above since August 2011. Expect limited pullbacks from the level, and a 100 pips straight run up if broken. With short term supports at 0.8330 and 0.8280, the pair can fall up to 0.8220 without jeopardizing current bullish midterm trend.
