FX News – November 22: AUD Slips Further

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It's been a pretty bad week for the AUD/USD pair as it continued to slide today after RBA Governor Glen Stevens’ statement on the aussie. The governor said that he remains open-minded about the issue of currency intervention. The RBA maintains a view that the aussie is currently overvalued. With intervention, the RBA might take a direct hand in ensuring that the aussie reaches the weaker value that they're comfortable with.

Aside from the governor's statement, the pair was also affected by the stronger greenback, and the weak Chinese manufacturing data that came out yesterday. From the previous 50.9, it fell to 50.4, contrary to expectations that it would maintain the previous level.

From dropping below the 0.9300 zone yesterday, the AUD/USD pair dropped even further. It slipped even more today as it reached a low of 0.9211. The pair is currently trading at 0.9227 with initial resistance seen at 0.9394, followed by 0.9417. Meanwhile, initial support is at 0.9260, followed by 0.9237.

After breaking past the 100.00 earlier this week, the USD/JPY continued its rally early in today's trading. It has since broken past the 101.00 barrier and currently shows no signs of stopping. The only thing that could affect its momentum at the moment is the result of the Nikkei's trading, which is expected to perform well before capping off the week.

The run is also due to the Bank of Japan's (BoJ) decision to maintain rates at 0.1%.

The USD/JPY pair is currently trading at 101.25, with initial resistance seen at 101.73, followed by 101.98. Meanwhile, initial support is at 100.52, followed by 100.27.

What to Expect Next Week

Some of next week's highlights will include the release of the BoJ's minutes of its meeting, unemployment data from Germany, and CPI data from Europe. We'll fill you in on those events and more when we return on Monday.

By FX Strategy Team, Published on 22nd of November 2013
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