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27 Feb 2014
AUD/USD creeping back to 0.8950
FXStreet (Edinburgh) - The Aussie dollar is gradually recovering the ground lost post-Capex release, with the AUD/USD now hovering over 0.8950.
AUD/USD hurt by data
The pair lost 50 pips soon after the Capex slumped 5.2% during the fourth quarter, missing estimates at 0.0% and down from the previous 2.6% advance. The bearishness seems to be intensifying now around the AUD in light of the next RBA minutes and the release of GDP figures. Analysts at UBS expect prices of iron ore to decline in the second half of this year due to an increasing supply fro m Australia and larger inventories in Chinese ports. “To us, that means downside risks remain for the Australian dollar and we stand over our 3m AUDUSD forecast of 0.86 and our end-2014 forecast of 0.85”, analysts concluded.
AUD/USD key levels
The pair is now losing 0.26% at 0.8942 with the immediate support at 0.8928 (low Feb.13) ahead of 0.8910 (55-d MA) and finally 0.8821 (61.8% of 2014 rise). On the upside, a break above 0.9050 (high Feb.24) would open the door to 0.9081 (high Feb.18) and then 0.9087 (2014 high Jan.13).
AUD/USD hurt by data
The pair lost 50 pips soon after the Capex slumped 5.2% during the fourth quarter, missing estimates at 0.0% and down from the previous 2.6% advance. The bearishness seems to be intensifying now around the AUD in light of the next RBA minutes and the release of GDP figures. Analysts at UBS expect prices of iron ore to decline in the second half of this year due to an increasing supply fro m Australia and larger inventories in Chinese ports. “To us, that means downside risks remain for the Australian dollar and we stand over our 3m AUDUSD forecast of 0.86 and our end-2014 forecast of 0.85”, analysts concluded.
AUD/USD key levels
The pair is now losing 0.26% at 0.8942 with the immediate support at 0.8928 (low Feb.13) ahead of 0.8910 (55-d MA) and finally 0.8821 (61.8% of 2014 rise). On the upside, a break above 0.9050 (high Feb.24) would open the door to 0.9081 (high Feb.18) and then 0.9087 (2014 high Jan.13).