AUD/USD forms double top at 0.93 after RBA, Chinese PMI
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AUD/USD forms double top at 0.93 after RBA, Chinese PMI

Yet another attempt to move above 0.93 did not bear fruit for AUD/USD. The pair made a move above this line and reached a new high of 0.9303, but quickly returned to support at 0.9250.

So even though we have a new high, the move is more of a formation of a double top than a real advance. The data did not help.

Here is how this double top looks on the chart:

AUDUSD April 1 2014 under resistance after RBA Chinese PMI technical 30 minute forex chart

The final HSBC/Markit purchasing managers’ index for China came out below the initial read: 48 instead of 48.5 points, indicating even faster contraction in March. The 50 point line separates growth from contraction.

In Australia, all eyes were on the rate decision by the Reserve Bank of Australia. Glenn Stevens and his colleagues made no change to policy as expected. Also, the accompanying statement did not contain any news, but actually reiterated the previous stance: it sees a likely period of interest rate stability.

The Aussie did enjoy a spike above 0.93 on the words that didn’t appear in the statement: no worries about the strength of the Australian dollar, even though it gained in value since the last rate decision.

Nevertheless, we can rest assured that either RBA governor Stevens or one of his colleagues will find the opportunity at a random public appearance to talk down the A$, and they already proved they have influence.

So, AUD/USD is now retreating, but still remains on a high range. Further support appears at 0.9213, followed by 0.9165. For more, see the AUDUSD forecast.


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.