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28 Feb 2014
AUD/USD breaks through 0.8970 as sellers bail out
FXStreet (Bali) - AUD/USD has broken above the 0.8970 resistance area, recording a new session high of 0.8988, as buyers take further control near term.
Short plays from yesterday's poor Capex data are being forced to bail out, with today's price acceleration mainly a product of stop triggered above 0.9075.
One main take away from the last 24h of price action is that the AUD market is attracting a greater number of players willing to bid on weakness and/or sellers' conviction to seek lower levels is fading. The fact that the AUD is rebounding almost 1 cent off Thursday's lows on bad domestic data has certainly frustrated sellers this week.
While still trading in the context of a day range, the short term bullish momentum in the AUD is extending in Asia, with the latest breakout of 0.8970 paving the way for a potential 0.8995/0.90 target, area where a descending trendline off 0.9045 Feb 24 peak comes at.
Short plays from yesterday's poor Capex data are being forced to bail out, with today's price acceleration mainly a product of stop triggered above 0.9075.
One main take away from the last 24h of price action is that the AUD market is attracting a greater number of players willing to bid on weakness and/or sellers' conviction to seek lower levels is fading. The fact that the AUD is rebounding almost 1 cent off Thursday's lows on bad domestic data has certainly frustrated sellers this week.
While still trading in the context of a day range, the short term bullish momentum in the AUD is extending in Asia, with the latest breakout of 0.8970 paving the way for a potential 0.8995/0.90 target, area where a descending trendline off 0.9045 Feb 24 peak comes at.