{"id":8273,"date":"2010-04-06T14:28:44","date_gmt":"2010-04-06T18:28:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8273"},"modified":"2010-04-06T14:28:44","modified_gmt":"2010-04-06T18:28:44","slug":"audusd-edges-off-highs-despite-rate-hike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/06\/audusd-edges-off-highs-despite-rate-hike\/","title":{"rendered":"AUD\/USD Edges off Highs Despite Rate Hike"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Aussie briefly popped past March highs during the Asia trading session after the RBA decided to hike its benchmark rate by another 25 basis points.\u00a0 The RBA opted to forgo warnings in the form of declining retail sales and building approvals data and decided Australia\u2019s economy still needs to be cooled down.\u00a0 The response in the Aussie is surprisingly tepid since one may expect the currency pair to register solid gains considering analysts were on the fence in regards to the probability of another interest rate increase.\u00a0 Meanwhile, upward momentum in the Aussie is being limited by negative psychological developments in the EU.\u00a0 Fresh uncertainty has sparked in Greece as government officials question the effectiveness of the IMF\u2019s involvement in potential financial assistance packages from the EU.\u00a0 Hesitant remarks from Greece\u2019s government have sent bond yields higher and the Euro stumbling lower.\u00a0 Meanwhile, the Cable is also being dealt a blow as reality begins to sink in that the UK will face a tight parliamentary election.\u00a0 These two psychological developments are leading investors away from the risk trade, thereby hampering intraday gains in the Aussie.\u00a0 However, the RBA\u2019s rate hike could prove to be a positive for the Aussie\u2019s medium-term outlook, particularly since the central bank implied that it will not hesitate to hike again should conditions warrant such action.\u00a0 For the time being investors will turn their attention to the U.S. with the release of the FOMC\u2019s meeting minutes.\u00a0 Investors will be looking to see if the Fed has become more positive on America\u2019s economic recovery in the wake of recent encouraging fundamental data.\u00a0 Although Australia will be relatively quiet on the data front tomorrow, the BoJ\u2019s monetary policy meeting followed by a key UK Services PMI release could spark activity in the FX markets.\u00a0 Additionally, investors should keep an eye out for any more developments in Greece.<\/p>\n

Technically speaking, the Aussie faces technical barriers in the form of intraday and 1\/14 highs.\u00a0 Speaking of which, the Aussie is creeping towards previous 2010 highs, meaning the 93 area could prove to be a tough barrier to crack over the near-term.\u00a0 As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 3\/31, 3\/15 lows.\u00a0 Additionally, the psychological .92 and.91 levels could serve as a technical cushion should it be tested.<\/p>\n

Price: .9226
\nResistances: .9230, .9247, .9264, .9278, .9291, .9304
\nSupports: .9214, .9194, .9185, .9173, .9161, .9143
\nPsychological: .91, .92 March Lows and Highs<\/p>\n

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(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 regarded neither 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 Aussie briefly popped past March highs during the Asia trading session after the RBA decided to hike its benchmark rate by another 25 basis points.\u00a0 The RBA opted to forgo warnings in the form of declining retail sales and building approvals data and decided Australia\u2019s economy still needs to be … <\/p>\n

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