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2 Oct 2013
AUD/USD softer to find support 0.9350
FXstreet.com (London) - AUD/USD is down -0.51% at 0.9350 currently following a slow decline from the highs at 0.9413.
Earlier on, Sean Callow at Westpac Banking Corporation ABN said the RBA’s neutral bias yesterday surprised those expecting an easier response to the AUD’s gains in September. The pair is softer again from 0.9370 to 0.9335 and settling 0.9335/50 as the EUR/AUD rallied from 1.4440 to 1.4480. Meanwhile, on Capital Hill, the pressure is mounting still and keeping the dollar on the back-foot. Investec Bank research teams commented on the situation, “Treasury Secretary Jack Lew wrote to Congress informing it that the final extraordinary measures to avoid hitting the debt ceiling were underway. The deadline for reaching the ceiling is 17 October, although this could be a little further away if the government shutdown lasts some time. The Republicans offered hope that the shutdown may be short-lived by making some minor concessions, but the danger is that a compromise is reached that simply results in the issues being rolled into the fight over the debt ceiling limit. Market reaction to the shutdown has been mixed, with the S&P rising and the USD earning a brief respite from the selling pressure. However we expect political pressure to bring about a resolution sooner rather than later”.
AUD/USD Levels
The 20 DMA is 0.9334, the 50 DMA is 0.9168 and the 200 DMA is 0.9821. RSI (14) reads 41.83. Supports are ascending from 0.9271, 0.9280 and 0.9323. Spot is 0.9347 while resistances are 0.9375, 0.9435, 0.9459, 0.9468 and 0.9503.
Earlier on, Sean Callow at Westpac Banking Corporation ABN said the RBA’s neutral bias yesterday surprised those expecting an easier response to the AUD’s gains in September. The pair is softer again from 0.9370 to 0.9335 and settling 0.9335/50 as the EUR/AUD rallied from 1.4440 to 1.4480. Meanwhile, on Capital Hill, the pressure is mounting still and keeping the dollar on the back-foot. Investec Bank research teams commented on the situation, “Treasury Secretary Jack Lew wrote to Congress informing it that the final extraordinary measures to avoid hitting the debt ceiling were underway. The deadline for reaching the ceiling is 17 October, although this could be a little further away if the government shutdown lasts some time. The Republicans offered hope that the shutdown may be short-lived by making some minor concessions, but the danger is that a compromise is reached that simply results in the issues being rolled into the fight over the debt ceiling limit. Market reaction to the shutdown has been mixed, with the S&P rising and the USD earning a brief respite from the selling pressure. However we expect political pressure to bring about a resolution sooner rather than later”.
AUD/USD Levels
The 20 DMA is 0.9334, the 50 DMA is 0.9168 and the 200 DMA is 0.9821. RSI (14) reads 41.83. Supports are ascending from 0.9271, 0.9280 and 0.9323. Spot is 0.9347 while resistances are 0.9375, 0.9435, 0.9459, 0.9468 and 0.9503.