By Fast Brokers – The Aussie has hopped back above .91 and is staging a modest recovery after participating in yesterday’s heavy pullback in the risk trade. The Aussie dove beneath 3/22 lows before bouncing off our 1st tier uptrend line and climbing back towards a respectable level. Australia has been quiet on the data wire this weekend, leaving its movements up to broad-based developments in the risk trade. That being said, the Aussie is still flexing a relative strength since the RBA has exhibited a tighter monetary stance than other developed nations. However, should uncertainty in the EU persist and Australia’s data cool, then the RBA could choose to keep its rates in check. Investors to keep in mind that recent employment and housing data from Australia was a bit disappointing, hinting that the RBA’s rate hikes could be having their intended impact. Steven’s will speak tomorrow and should he make an inference to the RBA’s rate plans this could have an impact on the Aussie. Speaking of which, Bernanke will testify today regarding the Fed’s exit plans. However, with the data wire quiet investors will likely be focusing on the EU summit taking place over the next two days. Hence, investors should keep an eye on broad-based Dollar reaction to incoming headlines from the summit.
Technically speaking, the Aussie has 3/22, intraday, and 3/9 lows serving as technical cushions along with the .91 and .90 levels should they be retested. As for the topside, the Aussie now faces multiple downtrend lines along with 3/23 and 3/17 highs.
Price: .9124
Resistances: .9137, .9145, .9156, .9162, .9168, .9177
Supports: .9121, .9116, .9110, .9101, .9087, .9073, .9061
Psychological: .91, .90, 2010 highs
(click chart to enlarge)
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