HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

AUD fly high on USD weakness


5 January 2018

The commodity currencies have leapt into action with the Australasian ones being the dominate players in today's market. With the USD weakness continuing in the new year climate, traders have been quick to benefit and they are capitalising at a rather ferocious pace. But what is most surprising is that US economic news has been extremely positive thus far and today was no different with the ADP employment change jumping to 250k (190k exp). We did see a little blip with US initial jobless claims lifting to 250k (240k exp), but this could be of the back of the Christmas period as temporary seasonal jobs dry up for a bit. One of the major factors though for the USD weakness could be in fact the new FED chairman Powell coming in, as the market is waiting to see what sort of force he is likely to be.

For now though the AUDUSD has been surging on the charts on the back of a rise in the price of commodities. Underpinning this could be the trade balance figures due out in a few hours, which many are hoping provide some economic promise on the back of the recent jump, and may be the spark which lights up the hawkish comments from the Reserve Bank of Australia. Otherwise, we could be in for a correction if markets feel the AUDUSD has jumped a little too high in such a short space of time.

For the AUDUSD it's likely that we will see some aggressive movement and resistance at 0.7864 is currently holding back the bulls from further movements higher. In the event we jump higher there is a potential trend line (in black) which could see an interesting bounce. If this fails, then I would expect the next level of resistance to come into play around 0.7926, just below the 80 cent mark. If the bears get a hold of things then support levels can be found at 0.7805 and 0.7750, but after a recent 6 month low it could be a hard ask to go much further down.

The NZD has also been benefiting heavily from the recent weakness in the USD and this can be seen on the charts for the NZDUSD. On top of this the most recent global dairy auction saw prices jump 2.2%, not huge, but still progress in the right direction for the primary industry focused nation. Confidence has been weaker as well since the recent election so the lift in the NZDUSD could be treated as a correction as commodity prices lift globally in the new year.

On the charts the NZDUSD has been lifting higher but I am weary of the potential trend line forming which could stop the bulls flying higher. Resistance seems a little further off at 0.7171, and is likely to be tested shortly. Above this is obviously the trend line and the next level at 0.7255. If the bears come back in swiping at a level failure then we could see a fall lower back down to support levels at 0.7080 and 0.7027, but I would be reluctant to say it will push through the 70 cent barrier in the current market climate unless we saw further drops in commodity prices, especially milk prices.

Share: Tweet this or Share on Facebook


Related

AUD/USD Dips to a 1-Month Low: A Technical Analysis
AUD/USD Dips to a 1-Month Low: A Technical Analysis

The AUD/USD currency pair has been experiencing a downward trajectory, slipping to a fresh one-month low of 0.6606, indicating a negative wave that initiated from 0.6870...

16 Jan 2024

Australian Dollar Grapples with Uncertainty Ahead of US Nonfarm Payrolls Release
Australian Dollar Grapples with Uncertainty Ahead of US Nonfarm Payrolls Release

The Australian Dollar (AUD) is exhibiting a phase of stability, yet with underlying pressures, as it hovers near a key psychological level of 0.6700...

5 Jan 2024

AUDUSD Wave Analysis: Facing Resistance and Poised for Potential Decline
AUDUSD Wave Analysis: Facing Resistance and Poised for Potential Decline

AUDUSD Encounters Stiff Resistance, Signaling a Potential Downward Correction. The Australian Dollar against the US Dollar (AUDUSD) has recently encountered...

29 Dec 2023

AUD/USD Pauses Just Above 0.6600 Ahead of US Payrolls Release
AUD/USD Pauses Just Above 0.6600 Ahead of US Payrolls Release

The Australian Dollar (AUD) is maintaining a modestly positive stance, with bearish pressure being capped around the 0.6590 level. The currency pair is poised to remain within a trading range...

8 Dec 2023

AUD/USD Eyes the 0.6745 Resistance Level Amidst Strengthening Momentum
AUD/USD Eyes the 0.6745 Resistance Level Amidst Strengthening Momentum

Overview of AUD/USD's Current Trajectory Economists Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group have forecasted potential further gains for the Australian Dollar against the U.S. Dollar (AUD/USD)...

4 Dec 2023

AUDUSD Technical Forecast: Navigating the Bearish Waves with Key Resistance and Support Levels
AUDUSD Technical Forecast: Navigating the Bearish Waves with Key Resistance and Support Levels

The AUDUSD currency pair has recently showcased a significant technical development, marked by a reversal from a critical resistance level. This shift occurred at the 0.6500 mark...

17 Nov 2023


MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.