AUD short covering expected to continue ahead of the US Thanksgiving holiday, falling commodity prices, broad USD strength keep antipodeans subdued on the day
AUD/USD inched up to 0.7207, from 0.7187 in early trade, only to retreat back to 0.7190 levels
The pair has gained around two cents in the past two weeks but met heavy resistance near 0.7250, is likely to consolidate between 0.7150 and 0.7250 until fresh news emerges
RBA Governor Glenn Stevens speech is awaited at 0905 GMT, and expectations are he might try and talk down the Aussie given it has proved resilient to a sharp fall in the price of iron ore (Australia's top export earner)
Spot iron ore lost more than 5 percent last week and came close to its lowest level since July amid a global glut and faltering Chinese demand
Immediate resistance for the pair is seen at 0.7207 (Session high Nov 24), while supports is located at 0.7186 (5 DMA)
Slew of crucial US economic data due later in the NY session, including prelim GDP and consumer confidence will also be closely eyed along with RBA Chief Stevens’ speech scheduled in the European session
Recommendation: Good to sell rallies around 0.7210, SL: 0.7260, TP: 0.7145
Resistance Levels:
R1: 0.72 (Psychological Level)
R2: 0.7207 (Session high Nov 24)
R3: 0.7212 (Cloud top)
Support Levels:
S1: 0.7186 (5 DMA)
S2: 0.7173 (Cloud base)
S3: 0.7144 (10 DMA)
AUD/USD inched up to 0.7207, from 0.7187 in early trade, only to retreat back to 0.7190 levels
The pair has gained around two cents in the past two weeks but met heavy resistance near 0.7250, is likely to consolidate between 0.7150 and 0.7250 until fresh news emerges
RBA Governor Glenn Stevens speech is awaited at 0905 GMT, and expectations are he might try and talk down the Aussie given it has proved resilient to a sharp fall in the price of iron ore (Australia's top export earner)
Spot iron ore lost more than 5 percent last week and came close to its lowest level since July amid a global glut and faltering Chinese demand
Immediate resistance for the pair is seen at 0.7207 (Session high Nov 24), while supports is located at 0.7186 (5 DMA)
Slew of crucial US economic data due later in the NY session, including prelim GDP and consumer confidence will also be closely eyed along with RBA Chief Stevens’ speech scheduled in the European session
Recommendation: Good to sell rallies around 0.7210, SL: 0.7260, TP: 0.7145
Resistance Levels:
R1: 0.72 (Psychological Level)
R2: 0.7207 (Session high Nov 24)
R3: 0.7212 (Cloud top)
Support Levels:
S1: 0.7186 (5 DMA)
S2: 0.7173 (Cloud base)
S3: 0.7144 (10 DMA)
