FX News – October 18: USD Falls Across the Board

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The aussie made a massive rally against the greenback in yesterday's trading as the USD fell across the board. This helped the AUD/USD pair reach 4-month highs at the 0.9600 level. It peaked at around 0.9645 zone, before sliding down near the 0.9600 level late in the US session.

However, positive data from China helped the pair pick up steam again during the Asian session. China posted a healthy GDP, which rose by 2.2% on a QoQ basis, beating expectations of 1.9%. It also rose on a YoY basis by 7.8% in line with market expectations. Meanwhile, Industrial Production was up by 10.2%, which is slightly better than the 10.1% that was projected. Retail sales were lower on a YoY basis, where it was at 13.3%, against the 13.5% expectation. Urban investment also came out lower than expected from 20.3% to just 20.2%.

The AUD/USD pair is currently trading at 0.9620, with initial resistance seen at 0.9704, followed by 0.9728. Meanwhile, initial support is at 0.9581, followed by 0.9557.

As for the USD/JPY, the pair also crashed yesterday due to the weak greenback. It has since hovered around the 97.80-98.10 zone. It is currently trading at 98.01, with initial resistance seen at 98.47, followed by 98.72. Meanwhile, initial support is at 97.19, followed by 96.94.

The greenback also struggled against the euro in yesterday's trading and has sustained its highest levels so far in today's session. The EUR/USD made a huge jump from the 1.3560 area to above 1.3600 during yesterday's Asian session due to the weak USD. The pair then peaked near the 1.3700 zone, before sliding slightly. It has since settled around the 1.3660 zone.

It is currently trading at 1.3663, with initial resistance seen at 1.3763, followed by 1.3798. Meanwhile, initial support is at 1.3595, followed by 1.3562.

By FX Strategy Team, Published on 18th of October 2013
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