Currency Updates:
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Forex pair of the day |
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AUD/USD – above a strong support |
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The pair faced a pull back on its support and is posting a rebound. Further advance is likely as the 200-day moving average behaves as a support and the daily RSI is reversing up above its oversold area. Then, as long as 0.9120 holds as a support (previous resistance which now acts as a support), next up targets are set at 0.9540 (horizontal resistance) and 0.9760 in extension (October 2013 top). A third target is set at 0.9970 (horizontal resistance). Only a break below 0.9120 will turn the outlook to bearish with a first alternative target is set at 0.89 (horizontal support), and 0.8650 in extension (January bottom). |
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Market Comment |
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Australia |
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The S&P/ASX 200 index was flat on Tuesday. The index is above its 20d MA (@ 5470) and above its 50d MA (@ 5431). 65% of the index constituents are above their 20D MA (vs 58% the previous session) and 59% of the shares are above their 50D MA (vs 54%). Australian consumer confidence fell a further 1.1% in the week ending May 25, according to the ANZ Bank. |
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Foreign Exchange |
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US Dollar was firm against most of its major counterparts on Tuesday. On the US economic data front, durables good orders rose 0.8% MoM (-0.7% expected) in April after an upwardly revised 3.6% gain the previous month. FHFA House Price index increased 0.7% MoM (+0.5% expected) in March while the Conference Board consumer confidence index jumped to 83.0 as expected in May from 81.7 the previous month. Finally, Richmond Fed manufacturing index was unchanged at 7 (8 expected) in May while Dallas Fed manufacturing activity dropped to 8.0 (9.5 expected) from 11.7 the prior month. The Australian Dollar pared most of its earlier gains against its major counterparts. |
