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10 Sep 2013
AUD/USD spiked on 0.9288 after solid China data but soon rebounded.
FXstreet.com (Athens)- The AUD/USD was trading at 0.9280 before the release of China data, but after Chinese data released at better than expected levels, the pair gained instantly almost 8 pips.
AUD/USD climbs higher on boosting China data release
The “Aussie” managed to touch overnight a daily high not seen since the late of July, as of 0.9241. But earlier, the “Aussie” stroke back again, hitting a new high as of 0.9288 after better than expected data released across the board. However the pair soon, erased its instant gaines of almost 8 pips, hovering again at its earlier trading zone near 0.9280 area. The fact is that China has come through its soft spot and Japanese growth seems to have genuinely turned a corner for now. In addition to the above, it seems that we are ahead of an international compromise in Syria, as news wires across the globe suggest that “Syria welcomed Russian proposal to put its chemical weapons under international control and US military strike could be abating.” . Thus, there is clearly an effort to prevent a US missile strike but also is good news for the US and Russia to take a step back from a potentially ugly confrontation. Last but not least, the Australian Business Confidence released at a 2-year high.
Technical Outlook and Strategic Bias on AUD/USD
According to Marc Chandler, Global Head Strategy from BBH MarketView “The Australian dollar appears to have carved out a double bottom and is testing the neckline near $0.9200. A convincing break would project a move toward $0.9500, although the $0.9300 area may prove difficult to breach initially. Initial support is seen around $0.9100.” At the time of writing the pair is trading at 0.9274, up 0.49%. The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15 minutes chart. Daily pivot point support can be found at S3: 0.9149 S2: 0.9126 S3: 0.9103, and resistance at R1: 0.9300 R2:0.9322 R3: 0.9374, respectively.
AUD/USD climbs higher on boosting China data release
The “Aussie” managed to touch overnight a daily high not seen since the late of July, as of 0.9241. But earlier, the “Aussie” stroke back again, hitting a new high as of 0.9288 after better than expected data released across the board. However the pair soon, erased its instant gaines of almost 8 pips, hovering again at its earlier trading zone near 0.9280 area. The fact is that China has come through its soft spot and Japanese growth seems to have genuinely turned a corner for now. In addition to the above, it seems that we are ahead of an international compromise in Syria, as news wires across the globe suggest that “Syria welcomed Russian proposal to put its chemical weapons under international control and US military strike could be abating.” . Thus, there is clearly an effort to prevent a US missile strike but also is good news for the US and Russia to take a step back from a potentially ugly confrontation. Last but not least, the Australian Business Confidence released at a 2-year high.
Technical Outlook and Strategic Bias on AUD/USD
According to Marc Chandler, Global Head Strategy from BBH MarketView “The Australian dollar appears to have carved out a double bottom and is testing the neckline near $0.9200. A convincing break would project a move toward $0.9500, although the $0.9300 area may prove difficult to breach initially. Initial support is seen around $0.9100.” At the time of writing the pair is trading at 0.9274, up 0.49%. The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15 minutes chart. Daily pivot point support can be found at S3: 0.9149 S2: 0.9126 S3: 0.9103, and resistance at R1: 0.9300 R2:0.9322 R3: 0.9374, respectively.