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The Aussie continued to trade lower Wednesday against the US Dollar following a Bank of China report and continued fears that Al Qaida will try to revenge the death of its leader Osama Bin Laden. The Aussie was trading at 1.0761, down 0.71% at the time of this writing.

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

AUD/USD Technicals

  • Previous sessions: The Aussie traded downwards for most of the session rising briefly during the late morning hours and then falling to its current level.
  • Current range: 1.0739 – 1.0879
  • Further levels: Below: 1.0741, 1.0748, 1.762 Above: 1.0783, 1.790, 1.0804
  • AUD / USD likely to find support at today’s low of 1.0739, and resistance at Monday’s high of 1.1013.

AUD/USD Fundamentals

  • 02:30   Australia Building Approvals m/m       Exp. 5.1% Prev. -7.4%    
  • 02:30   Australia         Retail Sales m/m       Exp. 0.6% Prev. 0.5%
  • 13:30   US         Unemployment Claims       Exp. 415K Prev. 429K    
  • 13:30   US         Prelim Nonfarm Productivity q/q       Exp. 1.1% Prev. 2.6%    
  • 13:30   US         Prelim Unit Labor Costs q/q       Exp. 0.8% Prev. -0.6%    
  • 14:15   US         FOMC Member Evans Speaks            
  • 14:30   US         Fed Chairman Bernanke Speaks            
  • 15:30   US         Natural Gas Storage       Exp. 68B Prev. 31B              
  • 18:15   US         FOMC Member Kocherlakota Speaks      

* All times are GMT.

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

AUD/USD Sentiment

  • Investors are expected to remain cautious on fears that Al Qaida and other terrorist organizations will try to seek revenge for the death by US Special Forces of its leader Osama Bin Laden, seeking investments with less risk such as the US Dollar.
  • The Central Bank of China reported Tuesday that it still maintained inflation control its highest priority, raising concerns that this will affect trade with Australia. China is Australia’s largest trading partner.
  • The US is not expected to raise interest rates in the near future, especially after weak reports from the Jobs sector.

Currensee Community: 44% are short, 56% are long. 279 open positions in real accounts trading this pair at the moment. The community has reversed its previous trend and is now expecting higher levels ahead.