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16 Jul 2015
AUD/USD remains pressured ahead of more Yellen
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7361 with a high of 0.7391 and a low of 0.7354.
AUD/USD managed a bid yesterday on yesterday's data from China but Yellen took the baton in the US, delivering a hawkish tone in her first day of a two day testimony and had the pair drop significantly. There is more to come tomorrow which should underpin the greenback.
The Aussie was boosted early on in the week with NAB's positive June business survey was supporting the Aussie on the 0.74 handle. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey. Then the Chinese data yesterday gave a positive tone overnight and gave some relief to the Aussie. Industrial Production and Retails Sales were slightly better than expectations while GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
The Aussie was pressured overnight by Fed chair Yellen who indicated that rates will rise this year. Yellen will have the second leg of her testimony before Congress later on in front of the Senate Banking Committee that could continue to. We also had the BoC cutting interest rates overnight which weighed across the commodities sector also, leaving the Aussie in highly bearish territory and the lowest levels since 2009.
Later in the day, Greece will still be the focus despite the Greek parliament vote of a yes while there are reports suggesting that the ELA would be discussed in more detail and the Eurogroup will hold a conference call and trigger other national parliaments to start their procedures.
Technically, and near term, the market remains offered below the 0.7613 short term resistance line. Karen Jones, chief analyst at Commerzbank noted the very near term the presence of a 13 count on the 240 minute chart and TD support at 0.7360. "Rallies will find initial resistance at 0.7559, the 23.6% retracement and should ideally remain contained by the 0.7613 short term resistance line to remain directly offered."
AUD/USD managed a bid yesterday on yesterday's data from China but Yellen took the baton in the US, delivering a hawkish tone in her first day of a two day testimony and had the pair drop significantly. There is more to come tomorrow which should underpin the greenback.
The Aussie was boosted early on in the week with NAB's positive June business survey was supporting the Aussie on the 0.74 handle. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey. Then the Chinese data yesterday gave a positive tone overnight and gave some relief to the Aussie. Industrial Production and Retails Sales were slightly better than expectations while GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
The Aussie was pressured overnight by Fed chair Yellen who indicated that rates will rise this year. Yellen will have the second leg of her testimony before Congress later on in front of the Senate Banking Committee that could continue to. We also had the BoC cutting interest rates overnight which weighed across the commodities sector also, leaving the Aussie in highly bearish territory and the lowest levels since 2009.
Later in the day, Greece will still be the focus despite the Greek parliament vote of a yes while there are reports suggesting that the ELA would be discussed in more detail and the Eurogroup will hold a conference call and trigger other national parliaments to start their procedures.
Technically, and near term, the market remains offered below the 0.7613 short term resistance line. Karen Jones, chief analyst at Commerzbank noted the very near term the presence of a 13 count on the 240 minute chart and TD support at 0.7360. "Rallies will find initial resistance at 0.7559, the 23.6% retracement and should ideally remain contained by the 0.7613 short term resistance line to remain directly offered."