Australian dollar continues showing resilience

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It seems that the Australian dollar can never fall to far. After resting on support at around 0.9270, the pair recovered, riding on a pause in the USD rally and returning back to 0.9340.

Slightly better than expected Australian data helped it tick a bit higher – enough for a break against the yen but not against the greenback, at least for now.

Australia reported a trade balance deficit of 1.36 billion in July, better than 1.77 expected and better than in June. The latter’s figure was revised from 1.68 to 1.56 billion. Retail sales for July came out with a rise of 0.4%, as predicted.

The Aussie continued enjoyed the stronger than expected GDP number from yesterday. AUD/JPY reached 98.18, the highest level since May 2013. AUD/USD peaked at 0.9363 before retreating back to range, but this is the higher range, not the lower one.

Here is the hourly chart:

AUDUSD September 4 2014 technical analysis fundamental outlook and sentiment Aussie dollarAs the major Australian events of the week are behind us, we may be able to mark another successful week for the A$. Even if the US dollar resumes its rally, the Aussie is set to beat other currencies.

0.95 seems to be a line in the sand for Glenn Stevens and co. Nevertheless, Australia’s strong growth, perfect credit rating and still healthy economy are set to attract investors in a yield hungry world.

For more, see the Aussie dollar forecast.

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About Author

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.

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