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The Aussie was higher Monday against the US Dollar on the heels of skepticism regarding the EU Finance Ministers ability to work out a comprehensive solution to EU debt crisis. The pair seems to be headed for lower territory, trading at 0.9945 (+0.40%) at the time of this writing.

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

 AUD/USD Technicals

  • Previous sessions: AUD/USD traded higher Monday hitting 0.9945. The pair mostly reacted to news regarding the EU debt crisis, but is still showing technical weakness.  
  • Current range: 0.9863 – 0.9969
  • Further levels: Below: 0.9928, 0.9932, 0.9938 Above: 0.9948, 0.9952, 0.9958
  • AUD / USD likely to find support at Wednesday’s low of 0.9803, and resistance at 1.0019.

 AUD/USD Fundamentals

  • 13:30 – US – Empire State Manufacturing Index
  • 14:00 – US – TIC Long-Term Purchases
  • 15:00 – US – NAHB Housing Market Index

 * All times are GMT.

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

 AUD/USD Sentiment

  • The Queensland flooding is expected to have a negative impact on growth due to disruption of the area’s coal exports and farming.
  • Australian auto sales data shows the biggest drop (3.1%) in 16 months. Inflation indicators point to slowing inflation.
  • The Market is highly skeptical that EU policymakers will be able to iron out a comprehensive solution to the EU debt crisis.

Currensee Community: 92% are short, 8% are long. 398 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.