By Fast Brokers – The Aussie is bouncing off intraday lows after the currency pair dropped below 2/19 lows during the Asia trading session. The Aussie came under selling pressure earlier wage prices came in at 0.6%, 2 basis points below analyst expectations. Since inflationary pressures aren’t reflected in wages at this point in time the RBA could opt to keep its monetary policy unchanged next week. However, there remains a good amount of uncertainty in 
regards to whether the RBA will raise next week or not. Hence, the Aussie could prove to be a volatile currency over the next few trading sessions. Australia will release Private CapEx tomorrow and stronger than expected capital spending could send the Aussie higher, and vice versa. Meanwhile, investors are awaiting U.S. New Home Sales accompanied by Bernanke’s testimony before Congress. Investors will be paying particularly close to Bernanke this time around since the Fed raised its discount rate by 25 basis points last week. Therefore, any surprise statements from Bernanke could have a sizable impact on the Dollar. Bernanke will continue his testimony tomorrow along with a public address from the BoE’s king and U.S. Durable Goods Orders data. Hence, activity in the FX markets could pick up over the 24 hours should statements from central banks or economic data stray from expectations.
Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday and 2/12 lows. Speaking of 2/12 lows, investors should eye our 1st tier uptrend line since it runs through these levels. Hence, a failure of our 1st tier uptrend line could yield a retest of the .8780 area over the near-term. As for the topside, the Aussie has multiple downtrend lines serving as technical barriers along with the highly psychological. .90 level should it be tested.
Price: .8914
Resistances: .8920, .8936, .8957, .8969, .8984, .9008
Supports: .8903, .8885, .8873, .8856, .8842, .8823
Psychological: .90, February highs
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