{"id":6797,"date":"2010-02-12T10:52:59","date_gmt":"2010-02-12T15:52:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6797"},"modified":"2010-02-12T10:52:59","modified_gmt":"2010-02-12T15:52:59","slug":"audusd-sinks-following-china-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/12\/audusd-sinks-following-china-news\/","title":{"rendered":"AUD\/USD Sinks Following China News"},"content":{"rendered":"

By Fast Brokers<\/strong> – The AUD\/USD reversed sharply from its psychological .89 level after China shocked markets by increasing its required reserve ration by 50 basis points.\u00a0 By taking more hawkish monetary action a day before the Chinese New Year the government could be sending a message that it will pursue a more conservative monetary policy during the year of the tiger.\u00a0 The FX markets received China\u2019s message loud and clear with the Dollar appreciating across the board.\u00a0 The Aussie also came under heavy selling pressure despite this week\u2019s impressive employment data.\u00a0 Australia\u2019s commodity-reliant economy is dependent upon demand from China.\u00a0 Hence, tighter liquidity in China could slow economic growth, thereby decreasing demand for Australia\u2019s commodities and discouraging the RBA from raising rates by as much as it would like.\u00a0 Meanwhile, today\u2019s EU data set disappointed with Prelim GDP data missing the mark.\u00a0 The disconcerting EU data added further downward pressure on the AUD\/USD as the Dollar rallied in reaction.\u00a0 However, the Greenback has weakened a bit after U.S. retail sales surpassed analyst expectations.\u00a0 Hence, it will be interesting to see how the FX markets react to upcoming Prelim UoM Consumer Sentiment data.\u00a0 The data wire will be relatively quiet on Monday since the U.S. and China will be on holiday.\u00a0 Japan will release its Prelim GDP data during Monday\u2019s Asia trading session, and if the numbers should deviate from analyst estimates this could yield a bit of volatility in the Dollar.\u00a0 Australia will enter the fray on Wednesday by releasing the RBA\u2019s meeting minutes along with NAB Business Confidence data.<\/p>\n

Technically speaking, the Aussie still has multiple downtrend lines serving as technical barriers along with 2\/11, 1\/29, and 1\/28 highs.\u00a0 Furthermore, the psychological .89 level could serve as a technical barrier should it be retested.\u00a0 As for the downside, the AUD\/USD as multiple uptrend lines serving as technical cushions along with intraday and 2\/10 lows.<\/p>\n

Price: .8825<\/p>\n

Resistances:\u00a0\u00a0 .8826, .8849, .8885, .8901, .8911, .8935<\/p>\n

Supports: .8808, .8796, .8778, .8764, .8744<\/p>\n

Psychological: .88, .89, February highs and lows.<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The AUD\/USD reversed sharply from its psychological .89 level after China shocked markets by increasing its required reserve ration by 50 basis points.\u00a0 By taking more hawkish monetary action a day before the Chinese New Year the government could be sending a message that it will pursue a more conservative monetary … <\/p>\n

Continue reading “AUD\/USD Sinks Following China News”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6797","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=6797"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6797\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}