FX News - Apr 11: Risk Off in Today’s Trading Drags Down Aussie

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And just like that, the AUD/USD pair returned to the sub-0.9400 area. This happened as the market’s risk appetite waned in today’s Asian session. The pair opened at 0.9397, and has almost  immediately dropped in value by around 30 pips. Just yesterday, the pair broke through the 0.9400 zone and the 0.9300 zone on Wednesday.

With risk appetite off, China’s data seemed to matter to the aussie once again. One contributing factor to the drop in the AUD/USD’s value may be attributed to China’s worse-than-expected CPI data in March that were released earlier today. Its 12-month CPI grew by 2.4%, which was lower than the expected 2.5% growth, while the monthly CPI fell by 0.5%, which was within analysts’ expectations. Then the country’s PPI data in March also came out worse than expected as it contracted by 2.3%, compared to the 2.2% contraction that analysts projected.

The AUD/USD pair is currently trading at 0.9375, with initial resistance seen at 0.9485, followed by 0.9509. Meanwhile, initial support is at 0.9392, followed by 0.9369.

The NZD/USD also saw a similar fate as the AUD/USD pair during today’s Asian session. After opening at 0.8668, it went on a steady slide before bottoming out at under the 0.8630 area. It traded within a tight range between the 0.8640-0.8650 areas after that, before picking up slightly before the opening of the London session.

Earlier today, New Zealand released March’s REINZ House Price Index and the Food Price Index, which came out at 3.4% and -0.3% respectively.

The NZD/USD pair is currently trading at 0.8656, with initial resistance seen at 0.8714, followed by 0.8736. Meanwhile, initial resistance is at 0.8645, followed by 0.8623.

By FX Strategy Team, Published on 11th of April 2014
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