By Fast Brokers – The usually reliable Aussie joined in on the risk aversion yesterday, setting new April lows before bouncing back above its psychological .92 level. Debt fears in Greece spread to Portugal and other PIIGS nations, sparking speculation of contagion. Such uncertainty even dragged the Aussie lower since instability in the EU may lead the RBA to be cautious and neutral come May’s meeting. After all, Steven’s recently expressed that interest rates may be approaching a reasonable level. With the end of the RBA’s rate hikes coming into view, any additionally fiscal flare ups in the EU could have a more noticeable impact on the Aussie. Although yesterday’s PPI figures printed a bit hotter than expected, today’s CPI number was in line with analyst expectations. Hence, with prices tame and Australian fundamentals cooling down as of late, the RBA may become more incline to stand pat, an Aussie negative. Although Australia will be relatively quiet on the data wire tomorrow, the next 24 hours could prove to be active with the Fed’s monetary policy decision on the way.
Technically speaking, the Aussie faces technical barriers in the form of intraday, 4/26, 4/21, 4/15 and 4/12 highs. Additionally, the psychological .93 and .94 levels could serve as psychological obstacles over the near-term. As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with intraday and 3/22 lows.
Price: .9217
Resistances: .9219, .9227, .92.40, .92.51, .92.59, .92.68, 92.83
Supports: .9211, .9200, .9188, .9171, .9158, .9134
Psychological: .93, .94, .92, April highs and lows
(click chart to enlarge)
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