AUD/USD has edged lower in Tuesday trading, as the pair trades in the mid-92 range late in the European session. In economic news, the RBA held interest rates at 2.50%. In the US, today’s highlight is ISM Manufacturing PMI.
As expected, the RBA maintained the benchmark interest rate at 2.50%, where it has been pegged since last August. RBA Governor Glenn Stevens took a swipe at the Aussie, saying that the high value of the currency in the past few months was not good for economic growth. After the rate decision, the Australian dollar briefly pushed above the 0.93 line, its highest level in four months. Last week, Stevens said that interest rates are unlikely to rise in 2014, as the RBA tries to boost consumer spending and residential construction. On the release front, Australian HIA New Home Sales started off the new week on a high note, as the indicator jumped 4.6% last month, a three-month high.
On Monday, Fed chair Janet Yellen said that “considerable slack” remained in the US economy and this would require further stimulus measures. Currently, the Fed is purchasing $55 billion in assets under its QE scheme. There have been three tapers to QE so far, and Yellen plans to wind up the program in the fall, provided that the US economy does not run into any serious turbulence. At the same time, the Federal Reserve has stated that it has no plans to raise interest rates until sometime in 2015.
AUD/USD for Tuesday, April 1, 2014
AUD/USD April 1 at 14:50 GMT
AUD/USD 0.9239 H: 0.9302 L: 0.9230
AUD/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 0.9000 | 0.9119 | 0.9229 | 0.9361 | 0.9446 | 0.9542 |
- AUD/USD has edged lower on Tuesday. The pair touched a high of 0.9302 late in the Asian session but was unable to hold these gains.
- There is weak support at 0.9229. This line could be tested if the Australian dollar loses more ground. There is stronger support at 0.9119.
- 0.9361 is a strong resistance line.
- Current range: 0.9229 to 0.9361
Further levels in both directions:
- Below: 0.9229, 0.9119, 0.9000, 0.8893 and 0.8735
- Above: 0.9361, 0.9466, 0.9542 and 0.9617
OANDA’s Open Positions Ratio
AUD/USD ratio is pointing to gains in short positions on Tuesday, continuing the trend we saw a day earlier. This is consistent with what we are seeing from the pair, as the Aussie has posted modest losses. AUD/USD ratio has a majority of long positions, indicative of trader bias towards AUD/USD reversing directions and moving upwards.
The Australian dollar is trading in the low-0.92 range. The pair has edged lower in the European session.
AUD/USD Fundamentals
- 3:30 RBA Cash Rate. Estimate 2.50%. Actual 2.50%.
- 3:30 RBA Rate Statement.
- 5:30 Australian Commodity Prices. Actual -12.8%.
- 13:45 US Final Manufacturing PMI. Estimate 55.9 points.
- 14:00 US ISM Manufacturing PMI. Estimate 54.2 points.
- 14:00 US Construction Spending. Estimate 0.2%.
- 14:00 US IBD/TIPP Economic Optimism. Estimate 46.3 points.
- 14:00 US ISM Manufacturing Prices. Estimate 59.2 points.
- All Day – US Total Vehicle Sales. Estimate 15.8M.
*Key releases are highlighted in bold
*All release times are GMT
