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23 Jan 2015
AUD/USD breaks 0.80, sellers in full control
FXStreet (Bali) - AUD/USD has seen a fresh wave of selling ahead of European trade, taking the rate below 0.80 once again after the first ephemeral test in early Asia.
The sell-off comes after a topside failure at 0.8050 despite an upbeat Chinese HSBC PMI, a confluence level aligning with today's pivot point. In favour of sellers are technicals as well as absence of any significance support until 0.7740 is faced, other than the usual round number levels, where option-related interest should also emerge.
At present, it looks like the AUD/USD is having a clean breakout of 0.80, with 0.7985 being printed before European traders come online. On the upside, 0.8035 and 0.8050/60 will now become the main levels of interest to reinstate short positions, with the market still betting for a reduction in interest rates by the RBA next month.
The sell-off comes after a topside failure at 0.8050 despite an upbeat Chinese HSBC PMI, a confluence level aligning with today's pivot point. In favour of sellers are technicals as well as absence of any significance support until 0.7740 is faced, other than the usual round number levels, where option-related interest should also emerge.
At present, it looks like the AUD/USD is having a clean breakout of 0.80, with 0.7985 being printed before European traders come online. On the upside, 0.8035 and 0.8050/60 will now become the main levels of interest to reinstate short positions, with the market still betting for a reduction in interest rates by the RBA next month.