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17 Mar 2014
AUD/USD opens at 0.90, bids hold downside
FXStreet (Bali) - AUD/USD opened at 0.90 cents before a rebound took the rate back up towards the 0.9020 session high, following a NY close of 0.9028. The rate was seen as low as 0.8990 in early Sydney.
The downside pressure on the AUD/USD came after the PBoC announced a widening of the USD/CNY trading band to 2% from 1%, with the knee-jerk reaction on the AUD still not clarifying the technical picture. Some market commentators continue to highlight ongoing concerns over the size of CNY carry trades by speculators.
AUD/USD key technical levels
Technically, the immediate level of support remains at 0.90 ahead of 0.8975 - intraday level - ahead of 0.8950 (inner trendline) and 0.8920/23. On the upside, 0.9040/50 is next resistance, followed by 0.9070/80 (potential confluence with descending trendline from March 7 peak) and ahead of 0.9125/30 (another potential confluence with April 7, 2013 high).
The downside pressure on the AUD/USD came after the PBoC announced a widening of the USD/CNY trading band to 2% from 1%, with the knee-jerk reaction on the AUD still not clarifying the technical picture. Some market commentators continue to highlight ongoing concerns over the size of CNY carry trades by speculators.
AUD/USD key technical levels
Technically, the immediate level of support remains at 0.90 ahead of 0.8975 - intraday level - ahead of 0.8950 (inner trendline) and 0.8920/23. On the upside, 0.9040/50 is next resistance, followed by 0.9070/80 (potential confluence with descending trendline from March 7 peak) and ahead of 0.9125/30 (another potential confluence with April 7, 2013 high).