AUD/USD Trades off Session Highs Following Mixed U.S. Data

By Fast Brokers – The AUD/USD posted a solid rally earlier today after dropping below our 1st tier uptrend line.  The FX market experienced a broad-based risk rally fueled by a positive reaction to Obama’s State of the Union.  Asia equity markets charged higher, a positive sign for the Aussie since China’s equities have been on a losing streak since the financial industry began tightening liquidity.  However, the Dollar is appreciating again after U.S. weekly Unemployment Claims printed higher than analyst expectations.  Furthermore, Durable Goods Orders came in weak as well.  However, the Core DGO data surpassed analyst expectations, showing consumption ex-auto has picked up.  Regardless, econ data this week has been altogether mixed with a negative tint, creating a downward drag on most major Dollar pairs and the AUD/USD is no exception.  Meanwhile, investors are preparing for tomorrow’s U.S. Advance GDP data release.  The GDP number will top off a wild week and volatility should remain at a heightened state.  Australia will be absent from the data wire for the remainder of the week, meaning the AUD/USD’s behavior should remain in the hands of broad-based activity in the Dollar along with any further news from China regarding liquidity.

Technically speaking, the AUD/USD is currently fighting to stay above our 3rd tier uptrend line with our 1st and 2nd tier hanging below.  Additionally, previous January lows and the psychological .8900 level should serve as technical cushions should they be reached.  As for the topside, the AUD/USD faces multiple downtrend lines along with 1/28 and 1/26 highs serving as technical barriers.  Furthermore, the .9000 area could continue to serve as a psychological force over the near-term.

Price: .8990

Resistances:   .8995, .9005, .9019, .9030, .9042, .9056

Supports: .8982, .8972, .8960, .8950, .8940

Psychological: .90, January highs and lows

Market Commentary provided by Fast Brokers.

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