By Fast Brokers – The Aussie took a step backwards during the Asia trading session after Australia’s Building Approvals and Retail Sales releases both printed weaker than analyst expectations. These figures couple with the disappointing employment number we saw not so long ago, implying that the RBA’s rate hikes could be having their intended impact. Hence, despite mixed comments from Stevens as of late, the RBA could opt to keep its monetary policy unchanged at the next meeting. However, analysts have the odds pegged at 50/50, meaning upcoming economic data from Australia and around the global could shift the RBA’s stance between now and their monetary policy meeting. Australia will keep the data train rolling tomorrow by releasing Trade Balance data. Should the Trade Balance print weaker than anticipated, this could drag on the Aussie. China and Japan will also print manufacturing production data. Investors will likely pay close attention to China’s number to see whether its economic recovery is on track. A strong figure from China could counter today’s disappointing data and push the Aussie higher in anticipation of more demand for Australia’s commodities. The UK and U.S. will also release their own manufacturing data tomorrow during the Western session, meaning activity could pick up as the session progresses. Meanwhile, the Aussie could remain range bound in anticipation of tomorrow’s action-packed schedule.
Technically speaking, the Aussie has intraday and 3/17 highs serving as technical barriers along with multiple downtrend lines. As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 3/22 and 3/25 lows. Additionally, the highly psychological .90 level could serve as a solid technical cushion once again should it be tested.
Resistances: .9176, .9185, .9199, .9214, .9230, .9247
Supports: .9152, .9141, .9130, .9118, .9106, .9093
Psychological: .90, .91, .92 March Lows and Highs
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Market Commentary provided by Fast Brokers.
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