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24 Feb 2014
AUD/USD lower on Yuan weakness
FXStreet (Bali) - As previously reported, amid the absence of Australian economic data until Wednesday, the main driver of the Aussie continues to be the unusual volatility in the Chinese Yuan.
Weakness in the offshore Chinese Yuan, down over 1 cent vs the US Dollar, coupled with today's USD/CNH fix at 6.1189 vs 6.0914 prior close (highest since December 20, 2013), has sent the Australian Dollar over 30 pips lower from 0.8985 to approach 0.8850 support again.
AUD/USD outlook
According to Jim Langlands, Founder at FXCharts: "The Aud appears as if it might grind its way back towards the support at 0.8920 (38.2% of 0.8659/0.9080), which should see decent buying interest and may hold it for a while. If wrong, then below 0.8920 would suggest a deeper decline towards 0.8885 minor support ahead of 0.8870 and possibly 0.8820 /rising trend support (61.8% of 0.8659/0.9080), although I don’t think we are ready for that yet."
Weakness in the offshore Chinese Yuan, down over 1 cent vs the US Dollar, coupled with today's USD/CNH fix at 6.1189 vs 6.0914 prior close (highest since December 20, 2013), has sent the Australian Dollar over 30 pips lower from 0.8985 to approach 0.8850 support again.
AUD/USD outlook
According to Jim Langlands, Founder at FXCharts: "The Aud appears as if it might grind its way back towards the support at 0.8920 (38.2% of 0.8659/0.9080), which should see decent buying interest and may hold it for a while. If wrong, then below 0.8920 would suggest a deeper decline towards 0.8885 minor support ahead of 0.8870 and possibly 0.8820 /rising trend support (61.8% of 0.8659/0.9080), although I don’t think we are ready for that yet."