FX News - June 30, 2014: AUD/USD Dips, GBP/USD Gains

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Soft economic data dragged the AUD/USD pair below the 0.9400 area prior to the opening of today’s European session. Australia’s TD Securities Inflation in June was a mixed bag, with it rising by 3.0 per cent over the past 12 months (previously 2.9 per cent), and staying steady over the previous month (previously 0.3 per cent). Meanwhile, HIA New Home Sales in May dropped by 4.3 per cent compared to the previous month (previously up by 2.9 per cent), while Private Sector Credit in May went up by 4.7 per cent over the past 12 months (previously 4.6 per cent), and up by 0.4 per cent compared to the previous month (previously 0.4 per cent).

The AUD/USD pair opened at 0.9413 before peaking at around the 0.9430 zone. From there, it dropped sharply just ahead of the European session, eventually sliding under the 0.9400 area. It is currently continuing to slide, and is trading at 0.9389. Initial resistance for the pair is at 0.9453, followed by 0.9477. Meanwhile, initial support is at 0.9414, followed by 0.9390.

Expect a lot of volatility from the pair tomorrow as the Reserve Bank of Australia will release its monetary policy statement. The Bank is expected to maintain rates at 2.5 per cent in the foreseeable future.

Meanwhile, the GBP/USD pair is currently testing the 1.7050 area after a shaky Monday morning in Europe. It opened the Asian session at 1.7035, before dropping at the 1.7010 area during the early part of the European session. But it shot up soon after that, and tested the 1.7050 area. It faltered briefly, but traders broke past the barrier again. It is currently trading at 1.7053, with initial resistance seen at 1.7067, followed by 1.7110. Meanwhile, initial support is at 1.7022, followed by 1.6979.

By FX Strategy Team, Published on 30th of June 2014
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