FX News - June 25 2014: AUD/USD Slides Under 0.94

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The AUD/USD pair is heading towards a steady slide in today’s Asian session ahead of RBA Deputy Governor Philip Lowe’s speech, and a number of releases in the United States later today. This came after an upward spike by the pair after China released positive HSBC PMI figures, which brought it past the 0.9400 level.

The pair began sliding around the opening of yesterday’s European session. By noon time in Europe, the pair already slid below the 0.9400 level, before leveling out at 0.9380, and then sliding down again after that. It opened today’s Asian session on a weak note at 0.9363, before making a brief rise at 0.9365. It is currently trading at 0.9360, with initial resistance seen at 0.9401, followed by 0.9424. Meanwhile, initial support is at 0.9333, followed by 0.9309.

Later today, the US will have a number of events, including the country’s Annualised GDP data for Q1, Marikit Services PMI in June, and Durable Goods Orders in May. The Annualised GDP is expected to drop by 1.7 per cent, while the Services PMI is seen to drop slightly from 58.1 to 58.0, while the Durable Goods Orders are expected to remain flat.

As for the USD/JPY pair, it shot up briefly above the 102.15 area due to improved US Consumer Confidence, which came out at 85.2, where only 83.5 was expected. In addition, New Home Sales in the US shot up in May at 0.504 million, where only 0.440 was expected. This translated to a change of 18.6 per cent compared to the previous month.

The pair was unable to sustain the level, however, and slid down to under 102.00 after that. It is currently trading at 101.89, with initial resistance seen at 102.26, followed by 102.51. Meanwhile, initial support is at 101.89, followed by 101.64.

By FX Strategy Team, Published on 25th of June 2014
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