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11 Apr 2013
Forex: AUD/USD bouncing off lows
FXstreet.com (Barcelona) - The Australian dollar found buying interest around the psychological support at 1.0500 overnight, dragged lower after the poor data from the domestic labour market. The jobless rate ticked higher to 5.6% in March, surpassing the median and prior print at 5.4%, and the Employment Changed dropped by 36.1K, above the 5K fall expected.
“There’s not a strong enough message here to swing the RBA either way but what is interesting is that if the 1Q CPI comes out low (released 24th April) the market will likely move back toward pricing a rate cut in the next few months (currently 25bps of rate cuts are priced to occur by November and I rate this as more reflecting global risk aversion than a strong view on the RBA, per se)”, commented Adrian Foster, Analyst at Rabobank.
At the moment, the cross is down 0.14% at 1.0528 facing the next support at 1.0498 (high Apr.3) ahead of 1.0474 (low Apr.10) and finally 1.0450 (MA10d).
On the upside, a breakout of 1.0555 (high Jan.24) would expose 1.0578 (high Jan.22) and then 1.0580 (high Jan.16).
“There’s not a strong enough message here to swing the RBA either way but what is interesting is that if the 1Q CPI comes out low (released 24th April) the market will likely move back toward pricing a rate cut in the next few months (currently 25bps of rate cuts are priced to occur by November and I rate this as more reflecting global risk aversion than a strong view on the RBA, per se)”, commented Adrian Foster, Analyst at Rabobank.
At the moment, the cross is down 0.14% at 1.0528 facing the next support at 1.0498 (high Apr.3) ahead of 1.0474 (low Apr.10) and finally 1.0450 (MA10d).
On the upside, a breakout of 1.0555 (high Jan.24) would expose 1.0578 (high Jan.22) and then 1.0580 (high Jan.16).