Thursday, October 1, 2015

AUD/USD robust but bearish below key levels

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7027 at time of writing with a high of 0.7038 and a low of 0.6979.

Risk sentiment is back in for the last trading day of the month and the Aussie has been able to garner some demand, making a minor recovery from the lows seen in earlier sessions down at 0.6936. The pair has scored through the 50 SMA on the hourly and is supported by the 20 SMA while trading between there and the 200 SMA at 0.7055 today.

We had some data from Australia overnight with building approvals offering a higher revision to July's numbers, and at the same time we had mixed data in private sector credit with a gain y/y and a slowdown m/m. However, today we have seen the ADP report, as a guide towards the Nonfarm Payrolls expectations this coming Friday.

AUD/USD awaits Nonfarm Payrolls

The ADP report was the highest since June but was tempered by lower revisions. 200k was recorded vs 195k expected and 186k prev and leaves expectations for the Nonfarm Payrolls somewhere in the region of above 200k which would support the case for the Fed hiking rates before the year is out.

AUD/USD levels

Technically, until AUD/USD can manage a score back above the 55 day ma at 0.7209 where it recently failed on the 27th August, the pair remains with a bearish bias. The 50 DMA at 0.7188 is first hurdle on route to a more positive trend. While trading below the 20 DMA at 0.7055, the recent low of 0.6936 is in focus ahead of the 0.6905 psychological support and the 0.6774 2004 low.
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