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22 Apr 2016
AUD/USD bears challenge Aussie's 2.2% rally
AUD/USD is down to test key support with an intraday sell-off in the greenback post the turnaround in markets during the ECB press conference after announcing concerns for the inflation outlook.
Wall Street closing in the red snapping 3-day gains
AUD/USD subsequently fell below the 0.78 handle in a move that eventually broke below the 100 sma on the 1hr chart at 0.7767 and ended 5 days of gains where the Aussie had rallied over 2%. US Oil has also shed to move below $44.00bbls and scored a low of $43.03 weighing on the commodity currencies.
In respect to the uncertainty surrounding supply levels, Russia's deputy minister Molodtsov said that a new initiative for an oil freeze may emerge in the next couple of weeks while Saudi Oil advisor Muhanna said the issue of production freezes will be discussed at the next OPEC meeting in June.
For the closing session in Asia we have nothing scheduled and will be monitoring flows in Tokyo and China and subsequent reaction to the better offered tone displayed overnight.
AUD/USD levels
AUD/USD has snapped the winning streak and has turned negative, falling below the ascending channel's support line. The current support at 14th April highs of 0.7736 is being tested and if this gives way, the 200 sma at 0.7717 will come under threat exposing 0.7680. Persistent downside pressures would target the base of the channel at 0.7505 to truly alleviates upside pressures. The upside targets daily closes on the 0.78 handle for a run towards the 100 dma at 0.7933.
Wall Street closing in the red snapping 3-day gains
AUD/USD subsequently fell below the 0.78 handle in a move that eventually broke below the 100 sma on the 1hr chart at 0.7767 and ended 5 days of gains where the Aussie had rallied over 2%. US Oil has also shed to move below $44.00bbls and scored a low of $43.03 weighing on the commodity currencies.
In respect to the uncertainty surrounding supply levels, Russia's deputy minister Molodtsov said that a new initiative for an oil freeze may emerge in the next couple of weeks while Saudi Oil advisor Muhanna said the issue of production freezes will be discussed at the next OPEC meeting in June.
For the closing session in Asia we have nothing scheduled and will be monitoring flows in Tokyo and China and subsequent reaction to the better offered tone displayed overnight.
AUD/USD levels
AUD/USD has snapped the winning streak and has turned negative, falling below the ascending channel's support line. The current support at 14th April highs of 0.7736 is being tested and if this gives way, the 200 sma at 0.7717 will come under threat exposing 0.7680. Persistent downside pressures would target the base of the channel at 0.7505 to truly alleviates upside pressures. The upside targets daily closes on the 0.78 handle for a run towards the 100 dma at 0.7933.