Forex: AUD/USD makes bears happy

on Nov 22, 2013
Updated: Oct 21, 2019
Listen Friday, November 22th:_ The AUD/USD yesterday registered a 1.01 percent loss having closed at 0.9227. The price action broke through the psychological 0.9300 mark, which has been offering both resistance and support since the middle of June. The ascending 89-hour simple moving average was also penetrated, which trend indicator offered strong support from 12 to 20 November.

Reserve Bank of Australia governor Glenn Stevens yesterday suggested in a speech titled “The Australian Dollar: Thirty Years of Floating”, given at the Australian Business Economists Annual Dinner, in Sydney, that the central bank may intervene in the currency market in order to push the “uncomfortably high” Australian dollar down. He added that such a move could be “effective and useful and it remains part of the tool kit.” However this kind of measure may come with a high cost for the bank, Stevens said.

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The market reacted immediately to the statement and the AUD/USD was sold off. The decline was also supported by the positive US data on the October Core PPI m/m, last week’s Unemployment Insurance Initial Claims and November Flash Manufacturing PMI.
Janet Yellen has overcome the first two hurdles to become the president of the US Federal Reserve. Yesterday the Senate Banking Committee voted to approve the nomination of Janet Yellen, nominated by President Barack Obama to succeed Ben Bernanke at the Fed. In the vote, 14 of the members supported Yellen and eight were against. Next follows a vote if the entire Senate, where Yellen is expected to face stiffer resistance.

Today the pair fell more to extend losses from the 23 October high of 0.9756 and the 50 percent Fibonacci retracement level of 1.0581 to 0.8846 at 0.9712. A few hours ago at 0.9166 the price reached its lowest point since 9 September. At press time the pair is changing hands at 0.9185, 0.41 percent below the opening price.

US JOLTS Job Openings are scheduled to be released at 15.00 UTC and are expected to be 3.89 million in September. The indicator excludes the farming industry.
Resistances: 0.9215, 0.9255 and 0.9300.
Supports: 0.9180, 0.9120 and 0.9100.
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AUD Forex