FX News - May 16 2014: Choppy Friday for the AUD/USD

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It’s been a choppy Friday for the AUD/USD pair so far, as has been the trend over the past few days. Some analysts said that this could be due to the frustration among traders who have tested the 0.9400 area but failed repeatedly. The latest case was on Wednesday when the pair briefly tested the 0.9400 during the European session, but eventually slid under that level again once the US session started. Yesterday, it also attempted to return to the 0.9400 area, but only peaked just above 0.9390 during the European session. It opened today’s Asian session at 0.9355, and has peaked so far at 0.9364.

The market is currently waiting for releases from the US later today, which could dictate the direction of the AUD/USD before this week ends. There’s the building permits data in April, which is expected to be at 1.01 million, up from the previous month’s 0.99 million. Meanwhile, housing starts are also expected to have risen in April to 0.980 million from the previous 0.946 million. The Reuters/Michigan Consumer Sentiment Index in May will also be released later today, and is expected to be slightly better at 84.5 compared to the previous month’s 84.1.

The AUD/USD pair is currently trading at 0.9347, with initial resistance seen at 0.9376, followed by 0.9399. Meanwhile, initial support is at 0.9306, followed by 0.9283.

As for the USD/JPY, the pair slid down in today’s Asian session due to the poor performance by the Nikkei, which slid by 1.75 per cent. This led to a drop by about 15 pips as the session progressed, leaving the pair to bottom out at the 101.44 area. It is currently making a slight recovery and is trading at 101.52. Initial resistance for the pair is at 101.86, followed by 102.11. Meanwhile, initial support is at 101.04, followed by 100.78.

By FX Strategy Team, Published on 16th of May 2014
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