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9 Aug 2013
AUD/USD continuing higher
FXstreet.com (Barcelona) - AUD/USD has continued to the upside despite poorer outlooks from the Australian economy, albeit supported by more robust Chinese conditions.
Jane Foley, Senior Currency Strategist at Rabobank International said, “Just when the market had accepted that there could be downside risks to the Chinese government’s 7.5% growth target for this year, the economic data have been pointing to a stabilisation in the outlook. The overnight release of Chinese July industrial production rose 9.4% y/y, above the median forecast of 9.2% y/y, while July retail sales increased 12.7% y/y at little firmer than the pace registered through the first quarter of the year.
AUD/USD support on China
The improvement in the news stemming from China has wrong footed AUD bears this week”. She continued, “Today the RBA revised lower its forecast for Australian growth in this morning’s policy statement to 2.25% to the year to December 2013 from 2.5% and yesterday’s July labour data brought a worse than expected -10.2K drop in employment in July. However, the market was well positioned for bad news and the positive surprises from China have led to a round of short-covering in the AUD”.
AUD/USD bid
Jane Foley said “for now we remain buyers on dips in AUD/USD with the break of the 21 day sma at AUD/USD 0.9116 providing a supportive signal. The July 30 high around the AUD/USD 0.9210 area is likely to provide some resistance”.
Jane Foley, Senior Currency Strategist at Rabobank International said, “Just when the market had accepted that there could be downside risks to the Chinese government’s 7.5% growth target for this year, the economic data have been pointing to a stabilisation in the outlook. The overnight release of Chinese July industrial production rose 9.4% y/y, above the median forecast of 9.2% y/y, while July retail sales increased 12.7% y/y at little firmer than the pace registered through the first quarter of the year.
AUD/USD support on China
The improvement in the news stemming from China has wrong footed AUD bears this week”. She continued, “Today the RBA revised lower its forecast for Australian growth in this morning’s policy statement to 2.25% to the year to December 2013 from 2.5% and yesterday’s July labour data brought a worse than expected -10.2K drop in employment in July. However, the market was well positioned for bad news and the positive surprises from China have led to a round of short-covering in the AUD”.
AUD/USD bid
Jane Foley said “for now we remain buyers on dips in AUD/USD with the break of the 21 day sma at AUD/USD 0.9116 providing a supportive signal. The July 30 high around the AUD/USD 0.9210 area is likely to provide some resistance”.