AUD USD more weakness coming
6/1/2016 10:13:40 AM
The AUD broke lower against the USD, with the pair posting a daily low at 0.7047 ahead of the release of FOMC Minutes. The AUD/USD pair later recoiled, but stayed well below the 0.7100 figure, as the poor Chinese data released earlier in the day, affecting by the most the commodity-related currency. In spite of a strong recovery in gold prices, the pair has fallen below a daily ascendant tendency line coming from September 2015 low at 0.6906, currently at 0.7110, and the price is well below a bearish 20 SMA, while the RSI indicator remains near oversold territory, and the Momentum hovers well below its 100 level. The JPY recoiled across the board as risk aversion reduced following a positive performance of the Chinese equity markets and a steadying of the Yuan. EUR/JPY temporarily growth above the 129 mark and hit a fresh 3-day high of 129.08 before settling in a range between 128.45-128.90 over the last hours. As for technical levels, instant constancy are seen at 129.08, 129.47 and 130.00. On the other hand, supports could be faced at 126.77, 126.27 and 126.08.