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17 Feb 2014
AUD/USD consolidating on 0.9020 key support
FXStreet (Guatemala) - AUD/USD is trading within a narrow range between the 0.9020’s and the 0.9040’s after dropping steeply from 0.9060 territory.
The US is out today so it has been a quiet start to the week. However, most of the important economic data in recent weeks is being reported below expectations for the US economy and strategists at Brown Brothers Harriman explained, “The pace of economic slowdown is prompting economists to slash Q1 GDP forecasts in half from earlier estimates to around 1.5%. The Empire State and Philly Fed surveys are expected to confirm the down shift in US growth. There are two main culprits: The first is weather and although it is often ridiculed, the fact of the matter is that the world's largest economy can be impacted by poor weather. The second is growth is returning to a more sustainable pace after accelerating in the second half of last year The real sector data out this week is largely confined to the housing market. Here the weather is playing a significant role and softer data should be expected. Permits have slipped and pending home sales have fallen, both leading indicators for the housing. Consumer prices remain benign, while a new methodology will be introduced for producer prices that make comparisons to the past difficult:. Specifically for the Australian economy, we will see the RBA minutes.
AUD/USD Levels
The 20 DMA is 0.8863, the 50 DMA is 0.8905 and the 200 DMA is 0.9223. RSI (14) reads 43.95. Supports are ascending from 0.8928, 0.8949, 0.8956, 0.8985. Spot is 0.9026 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.
The US is out today so it has been a quiet start to the week. However, most of the important economic data in recent weeks is being reported below expectations for the US economy and strategists at Brown Brothers Harriman explained, “The pace of economic slowdown is prompting economists to slash Q1 GDP forecasts in half from earlier estimates to around 1.5%. The Empire State and Philly Fed surveys are expected to confirm the down shift in US growth. There are two main culprits: The first is weather and although it is often ridiculed, the fact of the matter is that the world's largest economy can be impacted by poor weather. The second is growth is returning to a more sustainable pace after accelerating in the second half of last year The real sector data out this week is largely confined to the housing market. Here the weather is playing a significant role and softer data should be expected. Permits have slipped and pending home sales have fallen, both leading indicators for the housing. Consumer prices remain benign, while a new methodology will be introduced for producer prices that make comparisons to the past difficult:. Specifically for the Australian economy, we will see the RBA minutes.
AUD/USD Levels
The 20 DMA is 0.8863, the 50 DMA is 0.8905 and the 200 DMA is 0.9223. RSI (14) reads 43.95. Supports are ascending from 0.8928, 0.8949, 0.8956, 0.8985. Spot is 0.9026 while resistances are 0.9087, 0.9125, 0.9169 and 0.9204.