Key Highlights
Australian dollar suffered losses recently against the US dollar and cleared an important support area.
Australian AIG performance of the Mfg. Index was released by the Australian Industry Group, which registered a decline from 49 to 45.4.
Australian Company Gross Operating Profits released by the Australian Bureau of Statistics declined by 0.2% in the fourth quarter of 2014, compared to the expectation of a rise by 0.3%.
AUDUSD has a major support around 0.7720 and resistance ahead at 0.7800.
US ISM Manufacturing PMI
Today during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index representing business conditions in the US manufacturing sector will be released. The forecast is slated for a minor rise in February 2015, compared to the preceding month. Let us see how the outcome unfolds and affects the US dollar moving ahead. There are some economic releases lined up during the London session as well. The Euro zone Manufacturing Purchasing Managers Index (PMI) will released by the Markit Economics, which is expected to rise from 51 to 51.1.
Technical Analysis
The AUDUSD pair is attempting to break an important bullish trend line on the daily chart, and if the pair settles below the same then more losses are feasible in the short term. Recently, the pair failed to clear the 38.2% fib retracement level of the last leg from the 0.8294 high to 0.7626 low. So, it can be considered as a competition of the correction.
On the upside, initial resistance is around the 0.7800, which is a pivot area for the AUDUSD pair. Moreover, the 0.7840-50 area also represents a major barrier for the pair.
Titan FX is registered and regulated in New Zealand under FSP388647. Our global headquarters and operational hub is located in Auckland, New Zealand.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 as USD rebounds
EUR/USD lost its traction and retreated slightly below 1.0700 in the American session, erasing its daily gains in the process. Following a bearish opening, the US Dollar holds its ground and limits the pair's upside ahead of the Fed policy meeting later this week.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.