FXStreet (Guatemala) – AUD/USD‘s recovery onto the 0.70 was short-lived. The price has drifted to the downside at the start of this week with yesterday’s better offered theme continuing on overnight throughout European and US markets.
Oil bears enjoyed further downside as OPEC looks for cooperation from non OPEC members to collaborate in order to tackle oversupply and help prices rise. At the same time, Fitch Ratings downgraded Weatherford International plc to ‘BB’ from ‘BBB-‘, further pressuring oil on a negative outlook for the industry.
Commodity prices will remain the theme in the Asian session today and with Australia out, we will look to China markets for stimulus, while with nothing scheduled, the stock markets and price of the yuan could be potential catalysts although given the extent of which the authorities have already intervened and with the yuan stabilizing, there may be very little in it until as we await the FOMC instead. Bulls will look for a dovish statement from the FOMC that may help risk and the Aussie back onto the 0.70 handle in the short term.
AUD/USD levels
Technically, the 4hr charts offer the 200 sma at 0.7112 as a near term target should the pair manage to push through recent highs of 0.7047 and the daily 20 sma guarding Jan 7th 0.7075 high. To the downside, the previous daily low was 0.6875. The wider picture the price is targeting the weekly 20 sma at 0.7137, but a break below 0.6827 leaves the downside wide open and bear trend in tact.
(Market News Provided by FXstreet)