The Australian dollar trading higher with bullish bias on thing liquidity sessions manages to stay above 100dema.
After the November existing home sales traders wish to book profits on the USD bets.
“As soon as Fed’s rate hike was out of the way, we saw a lot of investors getting out of their long dollar positions,” said Sireen Harajli at Mizuho Corporate Bank in New York.
Pacific Investment Management Company (PIMCO): Australian economy will remain weak next year.
Mining investment and China’s economic slowdown is the main challenge facing Australia.
There is evidence that in 2016 the Australian economy will experience a recession rather than rebalancing.
Reserve Bank of Australia is expected to raise interest rates is unlikely in 2016 .
The decent jump in the oil prices supports the commodity currency like AUD manages to gain 150 pips from the lows.
In a very thin and last light trading session of this week wraps with unemployment claims.
Economists expect initial jobless claims likely to dip to 270K compared to 271K.
Deutsche Bank’s Joe LaVorgna: “Thursday’s jobless claims figures should point to ongoing improvement in the labor market, which is a key reason why consumer attitudes should remain relatively upbeat.”
Technical view: Parallel resistance seems at 0.7283 and 161.8 FE seems at0.7290 trading at 0.7255.
Trading support finds at 0.7230, 0.7200 and 0.7170
Resistance seems at 0.7290, 0.7330 and 0.7360
Weakness remains below 0.7190 but strengthens only below 0.7170.
Selling only favors below 0.7170 levels. We expect before the US data, the cross likely to test 0.7285 odd levels. In case if the cross unable to breach the 0.7290 again selling pressure looms at higher levels.