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1 Oct 2013
AUD/USD bounces off 0.93, bearish below 0.9350
FXstreet.com (Barcelona) - AUD/USD remains heavily offered heading into today's RBA rate decision, with the selling pressure accelerating just minutes before a downbeat release on China's PMI number, which came at 51.1 v 51.6, a 0.5bp miss which adds to the 1bp miss from the China HSBC PMI yesterday.
The downward momentum appears to have been contained sub 0.93, area where corporate demand was quite strong on Monday, according to bank sources. The exchange rate is presently around 0.9315, yet the bearish bias looks set set to continue as long as the rate does not break and hold above the 0.9340/50 resistance zone, a technical event hard to envisage unless the RBA shows a neutral stance today. Even if so, the potential 'risk-off' ramifications of a US shutdown may see AUD unsupported.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, in the unlikely scenario of a rate cut or simply a dovish read on today's RBA decision, "there are two weekly opening gaps unfilled from the past month, the first around 0.9240 and the latest around 0.8900..." which may come into play later this week.
The downward momentum appears to have been contained sub 0.93, area where corporate demand was quite strong on Monday, according to bank sources. The exchange rate is presently around 0.9315, yet the bearish bias looks set set to continue as long as the rate does not break and hold above the 0.9340/50 resistance zone, a technical event hard to envisage unless the RBA shows a neutral stance today. Even if so, the potential 'risk-off' ramifications of a US shutdown may see AUD unsupported.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, in the unlikely scenario of a rate cut or simply a dovish read on today's RBA decision, "there are two weekly opening gaps unfilled from the past month, the first around 0.9240 and the latest around 0.8900..." which may come into play later this week.