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8 Jan 2014
AUD/USD softer at Tokyo open, retesting 0.88 handle
FXstreet.com (Bali) - With technical evidence of a short term top at 0.90 mounting, the AUD/USD continues to trade under pressure in Asia, presently at 0.8903 - session low - vs 0.8922 NY close.
Earlier in Asia, while still in expansionary territory, the seasonally adjusted Australian Performance of Construction Index saw a surprising fall to 50.8 in December 2013 vs 55.2 in November last year, resulting on a weaker AUD going into the Tokyo open.
While further definition by a range breakout is needed to set the next directional bias, at present, odds are in favour that such break will come through the downside. In order to achieve so, sellers will first have to clear 0.8870/80 congestion area, followed by a break and close below 0.8830/40, which would then set the stage for a potential test of 0.88 and beyond.
Earlier in Asia, while still in expansionary territory, the seasonally adjusted Australian Performance of Construction Index saw a surprising fall to 50.8 in December 2013 vs 55.2 in November last year, resulting on a weaker AUD going into the Tokyo open.
While further definition by a range breakout is needed to set the next directional bias, at present, odds are in favour that such break will come through the downside. In order to achieve so, sellers will first have to clear 0.8870/80 congestion area, followed by a break and close below 0.8830/40, which would then set the stage for a potential test of 0.88 and beyond.