Forex: AUD/USD: RBA’s Debelle reiterates AUD too high

Fed’s Bernanke: no taper before targets; US data in abundance today

Forex: AUD/USD: RBA’s Debelle reiterates AUD too high

_iNVEZZ.com: Wednesday, November 20th:_ The AUD/USD daily candle yesterday opened at 0.9366 and then dropped to a low of 0.9351, where the ascending 89-hour simple moving average provided support and the price bolted north to reach at 0.9447 its highest point since 8 November. Subsequently the daily candle closed at 0.9439 to secure a 0.73 percent intraday gain.

In trading earlier today, the MACD (9,12,1) indicator formed a divergence on the 1H and 4H time frames and the quote was pushed back down. At the moment the pair is trading at 0.9389, 0.50 percent below the day’s opening level and close to the 89-hour SMA, which may again offer support. The intraday trading range so far has been from 0.9440 to 0.9380.

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The Melbourne Institute’s Australian Leading Index m/m came out earlier today, up 0.1 percent in September.

Reserve Bank of Australia assistant governor Guy Debelle has reiterated the central bank’s position that the Australian dollar remains at “uncomfortably high” levels. Speaking earlier in the day, Debelle also said that an early tapering by the US Fed of its $85 billion bond purchasing programme would have a good impact on the Australian economy as the move should help to weaken the AUD.

Fed chairman Ben Bernanke said in a speech overnight UTC that the stimulus programme will continue at the same pace until labour market and inflation targets are reached, despite the recent economic improvement.

In the US today, the Bureau of Labor Statistics is due to release the October Consumer Price Index m/m at 13.30 UTC, which is expected to be unchanged from September. Core CPI m/m is forecast to have risen by 0.1 percent in October.

At 13.30 UTC also, the US Census Bureau will release October Retail Sales m/m and Core Retail Sales m/m, both expected to show 0.1 percent increases.

US Existing Home Sales are due out at 15.00 UTC with expectations for 5.15 million in October. At that time also, the Census Bureau reports on Business Inventories m/m for September (0.3 percent rise expected) and FOMC member William Dudley is scheduled to speak.

Another FOMC member, James Bullard, speaks at 17.10 UTC and then at 19.00 UTC the Fed will publish the minutes of the most recent FOMC meeting.

Today’s resistances: 0.9420, 0.9465 and 0.9500.

Supports: 0.9385, 0.9355 and 0.9325.

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