Back
18 Jul 2013
AUD/USD violates 0.9190/95; NAB, Shanghai weigh
FXstreet.com (Barcelona) - Following a pessimistic NAB Business Confidence release, the AUD/USD is presently breaking through area of support at 0.9190/95, with the lowest so far printed at 0.9184.
Australian business conditions struggle - NAB
According to NAB: "Business conditions struggle in the June quarter and confidence falls back, driven by a pessimistic mining sector. Falling equities and offshore concerns likely to be weighing on sentiment. Little sign yet that lower interest rates and AUD are helping. Conditions still very subdued in trade and consumer dependent sectors. Forward indicators still worrying. Capex expectations a little stronger but mining much weaker. Falling prices imply soft Q2 inflation."
AUD/USD technical outlook
The Australian Dollar, also weighed by the Shanghai index, which is down almost 1%, is in a position to potentially face further losses after the technical support at 0.9190/95 gave up. Sellers just achieved the first close and hold below the breakout point in the hourly, suggesting more downside is allowed. Next support comes at 0.9170 - July 16 intraday levels - ahead of deeper retracement towards 0.9120. On the topside, 0.9190 up to 0.92 should see offers return ahead of 0.9220 - intraday level -.
Australian business conditions struggle - NAB
According to NAB: "Business conditions struggle in the June quarter and confidence falls back, driven by a pessimistic mining sector. Falling equities and offshore concerns likely to be weighing on sentiment. Little sign yet that lower interest rates and AUD are helping. Conditions still very subdued in trade and consumer dependent sectors. Forward indicators still worrying. Capex expectations a little stronger but mining much weaker. Falling prices imply soft Q2 inflation."
AUD/USD technical outlook
The Australian Dollar, also weighed by the Shanghai index, which is down almost 1%, is in a position to potentially face further losses after the technical support at 0.9190/95 gave up. Sellers just achieved the first close and hold below the breakout point in the hourly, suggesting more downside is allowed. Next support comes at 0.9170 - July 16 intraday levels - ahead of deeper retracement towards 0.9120. On the topside, 0.9190 up to 0.92 should see offers return ahead of 0.9220 - intraday level -.