The USD/JPY rose to the highest in more than two weeks after the Federal Reserve officials spurred bets that the US central bank will increase interest rates as soon as next month. Additionally, US consumer confidence spiked higher in August.
The USD strength pushed AUD/USD down to 0.75, even though Australia recorded much better than expected building approvals data. The gap between U.S and Australian interest rates have narrowed, which erodes the Aussie’s yield. The slumping Gold price is another catalyst for the AUD recent downtrend. Attention turns first to Friday’s U.S non-farm payroll report ahead of next Tuesday’s RBA rate statement.
USDJPY continued to march higher, breaching 103 for the first time in a month. Except for the backdrop of USD rally, the yen weakened after Bank of Japan Governor Kuroda reiterated his readiness to ease monetary policy further.
| AUD/USD |
8/31/2016 12:22 AM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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AUD/USD Intraday: key resistance at 0.7580. |
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Pivot: 0.7580
Our preference: short positions below 0.7580 with targets @ 0.7480 & 0.7450 in extension.
Alternative scenario: above 0.7580 look for further upside with 0.7600 & 0.7645 as targets.
Comment: the RSI lacks upward momentum.
Supports and resistances:
0.7645 ***
0.7600 ***
0.7580 ***
0.7514 Last
0.7480 ***
0.7450 **
0.7416 *** |
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