{"id":9665,"date":"2010-05-24T10:56:18","date_gmt":"2010-05-24T14:56:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9665"},"modified":"2010-05-24T10:56:18","modified_gmt":"2010-05-24T14:56:18","slug":"audusd-consolidates-with-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/24\/audusd-consolidates-with-risk-trade\/","title":{"rendered":"AUD\/USD Consolidates with Risk Trade"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Aussie is consolidating above its psychological .82 level following last week\u2019s steep decline.\u00a0 It seems investors are taking advantage of oversold conditions as the risk trade stabilizes across the board.\u00a0 Investors punished the Aussie last week as the Shanghai Composite experienced a heavy selloff and Australian resource companies tumbled amid fear of a decrease in demand from China.\u00a0 Additionally, investors feel the new government tax levied on resource companies could hamper economic growth.\u00a0 All of this points to a neutral stance at the RBA and the central bank did not deviate from this assumption by citing worries that problems in the EU could spill over into the global economy.\u00a0\u00a0 On a positive note, the Shanghai Composite is up over 3% today after the government announced that new property taxes may not come into effect for another few years.\u00a0 However, this is all speculation and we\u2019ll have to see how the situation develops.\u00a0 Regardless, an upturn in the SCI is good news for the Aussie since the composite has been dragged into a bear market.\u00a0 Australian new motor vehicle sales screamed higher by 8.4% last month despite the RBA rate hikes.\u00a0 Data points like these help provide validity for the central bank\u2019s hawkish monetary regime.\u00a0 Australia will be quiet on the data wire tomorrow, leaving to currency pair up to broad-based movements in the risk trade over the near-term, meaning investors should keep a sharp eye on the news wire for any new developments in the EU.
\nTechnically speaking, the Aussie faces technical barriers in the form of 5\/21 highs and the psychological .85 level.\u00a0 As for the downside, the Aussie has technical cushions in the form of intraday, 5\/20, and September 2009 lows.<\/p>\n

Price: .8277
\nResistances:\u00a0 .8291, .8314, .8329, .8341, .8363, .8384
\nSupports:\u00a0 .8251, .8224, .8195, .8172, .8154, .8138
\nPsychological:\u00a0 .85, .84, .83, May 2010 and September 2009 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 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 is consolidating above its psychological .82 level following last week\u2019s steep decline.\u00a0 It seems investors are taking advantage of oversold conditions as the risk trade stabilizes across the board.\u00a0 Investors punished the Aussie last week as the Shanghai Composite experienced a heavy selloff and Australian resource companies tumbled amid … <\/p>\n

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