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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.8364, 0.8263, 0.8137
- Resistance: 0.8466, 0.8592, 0.8669
The Australian Dollar appears vulnerable to deeper losses against its US namesake, with sellers now poised to push prices below the 0.84 figure. Near-term support is at 0.8364, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.8263. Alternatively, a turn above the 38.2% Fib at 0.8466 clears the way for a test of the 0.8552-92 area marked by the November 6 low and the 23.6% expansion.
While a short position seems compelling, we will tactically opt to stand aside for now. Yesterday’s RBA policy announcement offered next to nothing new to drive policy expectations, which shifts focus on today’s third-quarter GDP data release. We will remain on the sidelines until that outcome is revealed and the markets’ reaction can be analyzed.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
