AUD/USD Jan.28-Aussie Continues Down Against US Dollar

The Aussie traded lower Thursday against the US Dollar following the Australian Government’s announcement of a flood relief tax. The Aussie was trading at 0.9921 down 0.30%, as of this writing.

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

AUD/USD Technicals

• Previous sessions: AUD/USD traded lower again Thursday.  
• Current range: 0.9876 – 0.9995
• Further levels: Below: 0.9900, 0.9905, 0.9916 Above: 0.9932,0.9937, 0.9948
• AUD / USD likely to find support at Friday’s low of 0.9833, and resistance at 1.0022.

 

AUD/USD Fundamentals

• 11:00 – US – Treasury Sec Geithner Speaks
• 13:30 – US – Advance GDP q/q Exp. 3.5%
• 13:30 – US – Advance GDP Price Index q/q Exp. 1.7%
• 13:30 – US – Employment Cost Index q/q Exp. 0.5%
• 14:55 – US – Revised UoM Consumer Sentiment Exp. 73.1
• 14:55 – US – Revised UoM Inflation Expectations

 * All times are GMT.

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

 

AUD/USD Sentiment

• Australian Prime Minister Julia Gillard announced today a new tax to help pay for the flood relief.
• The Australian Government pegged the cost of the flood recovery at $5.6B Australian Dollars and estimates the negative effect on economic growth at less 0.5%. Other Analysts estimate the cost of the recovery at closer to $20B Australian Dollars.
• US Initial Jobless claims were higher than expected.
• US Pending Home Sales for December were higher than expected, reaching 2.00%. The market had been expecting a rise of 0.8%, indicative of an improving economy.

Currensee Community: 92% are short, 8% are long. 408 open positions in real accounts trading this pair at the moment. The community sees the Australian Dollar as currently overvalued, expecting lower levels of the pair ahead.