AUD/USD: strong bullish bias
The Australian dollar was one of the least affected currencies against the US dollar on Tuesday’s big sell-off with the AUD/USD advancing remarkably in the past two sessions.
As the Aussie dollar is closely correlated with the Chinese economy, and with the latest Chinese economic data better than expected (it wouldn’t be surprising to see more upbeat data if one considers the upcoming elections), it is safe to assume that at 1.038 at the time of writing the bulls have the upper hand.
An upside penetration of the 1.0425 level would expose September’s highs at 1.0425 with major support sitting at 1.0295. Traders have a lot to absorb on the economic data front today with the US jobless claims and the pending home sales among the most important for the fate of the US dollar.
Published: 25 October 2012
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