AUD/USD Mar.02-Aussie down against US Dollar

The Aussie was down against the Greenback Tuesday following confirmation data of an improving US economic recovery and an expected Interest rate decision by the RBA.

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

AUD/USD Technicals

• Previous sessions: The Aussie has been steadily dropping throughout the session, reaching a low of 1.0129 late in the afternoon and consolidating back up to 1.0136 as of this writing.
• Current range: 1.0150- 1.0200
• Further levels: Below: 1.0132, 1.0140, 1.0147  Above: 1.0162, 1.0170, 1.0177
• AUD / USD likely to find support at 1.0003, and resistance at 1.0202.

AUD/USD Fundamentals

• 07:30   US         Challenger Job Cuts y/y            
• 08:15   US         ADP Non-Farm Employment Change       Exp. 178K    
• 10:00   US         Fed Chairman Bernanke Testifies            
• 10:30   US         Crude Oil Inventories       Exp. 1.1M    
• 14:00   US         Beige Book            
• 17:30   Australia         AIG Services Index              
• 19:30   Australia         Building Approvals m/m     Exp. -3.1%  
• 19:30   Australia         Trade Balance       Exp. 1.56B  
• 20:00   US         Fed Chairman Bernanke 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 (RBA) announced today that it is holding the lending interest rate unchanged at 4.75%. This was expected by traders.
• In the same announcement, the RBA explained the decision was based on expectations of a slowdown in employment growth and a strong Australian currency which will help keep inflation in check.
• US manufacturing data reached its highest level in seven years in February, strengthening the consensus that the recovery of the of US economy is gathering momentum.

Currensee Community: 92% are short, 8% are long. 460 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.