The Aussie dollar has been moving higher for nine consecutive days due to the absence of USD strength and the RBA rate hold factor. The cross posted a strong weekly close in 2 years closed with 4% gains tested the 100dema and 20wsma on Friday’s session.
Today at an early Asia-pacific session, RBA’s deputy governor Lowe scheduled a speech at CFA Institute Australia Investment Conference Sydney.
RBA Lowe: Australian economic fundamentals strong reason to be optimistic, to improve the living standards of speed may not be driven by the RBA, the Australian dollar fell to help the Australian economy to adapt gradually calmed down mining boom.
Australian Productivity alternatively only support the standard of living, standard of living may not be supported by the terms of trade.
Economic events: NAB business confidence due in 1.30hrs of time. In the past few months, the NAB business confidence fell sharply. In August, the confidence level fell to 1. In case if the readings fell below 0 means business conditions are worsening. In the other side, if the September readings bounce back indicates business conditions are improving
China trade balance due in 3hrs of time. In August, trade surplus surged to $60.2Billion printed above estimates. In September, analysts are expecting $46.9B.
Technical view: At yesterday’s session, the cross unable to close above the 100dsma but remains above 100dema.
Ahead of the data the cross has been trading with negative divergence in the hourly chart. The 100dema finds at 0.7340 currently the cross is trading at 0.7360.
Intraday trading support: 0.7340, 0.7320, 0.7300
Resistance: 0.7370, 0.7400, 0.7440
Intraday selling opens below 0.7320 accelerates below 0.7300 towards 0.7280 and 0.7260. On the higher side in the extreme case 0.7440 might be the intraday’s cap.