Free Trial

AUD/USD Falters Wednesday

AUSSIE

AUD/USD was offered Wednesday, amid a continued appreciation in the greenback. In addition, worse than expected Australian GDP data prompted a round of AUD sales, while softer oil and precious metals may have helped prevent recovery later in the day. AUD/USD attacked the $0.7300 mark but failed to penetrate the level and finished the day 34 pips worse off, above intraday lows.

  • Australian Treasurer Frydenberg told ABC radio this morning that the government is planning to bring the already legislated tax cuts forward in next month's budget. Frydenberg added that the government is reviewing its options around superannuation guarantees.
  • AUD/USD last trades at $0.7334, slightly on the back foot. Bears see Aug 19 high of $0.7276 (a former breakout level) as their initial target. A break here would open up Aug 28 low of $0.7255. Conversely, a rally above Sep 1 high of $0.7414 would encourage bulls to take aim at the upper 3.0% 10-DMA envelope at $0.7498.
  • Final Australian CBA Services/Composite PMIs are due at the top of the hour, with trade balance coming up later in the day. Retail sales hit the wires tomorrow.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.