AUD/USD Feb.10-Aussie Declines Wednesday against US Dollar

The Aussie reversed its rise against the US Dollar Wednesday, following US Fed Chairman Bernanke’s dovish remarks trading at 1.0097 down 0.54% at the time of this writing.

Was this the top of the latest Aussie rally?

Here’s a quick update on technicals, fundamentals and community trends.

AUD/USD Technicals

• Previous sessions: The Aussie traded lower Wednesday.
• Current range: 1.0152 – 1.0189
• Further levels: Below: 1.0062, 1.0078, 1.0088 Above: 1.0114, 1.0130, 1.0140
• AUD / USD likely to find support at today’s low of 1.0089, and resistance at 1.0223.

 

AUD/USD Fundamentals

• 08:30 – US – Unemployment Claims                 Exp. 411K
• 10:00 – US – Wholesale Inventories m/m     Exp. 0.7%
• 10:30 – US – Natural Gas Storage                       Exp. -191B
• 14:00 – US – Federal Budget Balance               Exp. -69.5B
• 17:30 – Australia – RBA Gov Stevens Speaks

* All times are GMT.

For the major events due later in the week, see the  AUD/USD forecast.

AUD/USD Sentiment

• The Reserve Bank of Australia is expected to leave interest rates mostly unchanged for 2011 due to the natural disasters that have affected the Australian economy.
• The Australian Dollar is the most overvalued against the US Dollar compared to other currencies. With the aftermath of the Queensland flooding and Cyclone Yasi lingering in the air as well as China’s inflationary counter measures, we can expect a downward correction ahead.

Currensee Community: 92% are short,8% are long. 430 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.