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31 Jul 2015
AUD/USD turns positive on broad based USD weakness
FXStreet (Mumbai) - The AUD/USD pair jumped to 0.7366 as the sharp slowdown in the wage growth in the US triggered broad based USD weakness.
Recovers from six year low
The spot had dropped to 0.7233, its lowest since April 2009 earlier today. The bid tone on the USD was strong on account of rise in the rate hike bets after the upbeat FOMC statement and US Q2 GDP report. However, the USD was offered across the board after the Employment Cost Index data released today showed the wage growth in the second quarter was the slowest since 1982.
The weak data pushed the 2-year yield to 0.66%, almost ten basis points lower from the daily high around 0.75%. Consequently, the AUD/USD pair managed to recover losses to trade around 0.7350 ahead of the monthly closing.
AUD/USD Technical Levels
The immediate resistance is located at 0.74 handle, above which the spot could target 0.7448 (July 21 high). On the other hand, support is seen at 0.7327 (hourly 200-MA) and 0.7233 (daily low).
Recovers from six year low
The spot had dropped to 0.7233, its lowest since April 2009 earlier today. The bid tone on the USD was strong on account of rise in the rate hike bets after the upbeat FOMC statement and US Q2 GDP report. However, the USD was offered across the board after the Employment Cost Index data released today showed the wage growth in the second quarter was the slowest since 1982.
The weak data pushed the 2-year yield to 0.66%, almost ten basis points lower from the daily high around 0.75%. Consequently, the AUD/USD pair managed to recover losses to trade around 0.7350 ahead of the monthly closing.
AUD/USD Technical Levels
The immediate resistance is located at 0.74 handle, above which the spot could target 0.7448 (July 21 high). On the other hand, support is seen at 0.7327 (hourly 200-MA) and 0.7233 (daily low).