FXStreet (Guatemala) – AUD/USD is sideways in a tight range that developed after the bid from the 0.7200 level in mixed risk and a mixed dollar as commodities and stocks run the show in light volumes.
However, what support the minor recovery in oil was offering is short-lived with the black gold dropping back below $36.00bbl again. In the same light of the downside potential, higher US yields could kick in to support the dollar as we come out of the holiday season as noted by analysts at Bank of Tokyo Mitsubishi. “The US dollar has failed to track US yields higher during the holiday period creating the potential for some catch up strength early next year.” Meanwhile, data wise, we await the Chinese non-manufacturing and NBS manufacturing PMI’s for December on the last trading day of the year.
Technically, we are trading around the pivotal support at 0.7283 with the 20 DMA at 0.7289 and a break away below it opens up S2 at 0.7254 on the short-term sticks. S3 at 0.7202 is key near-term support while RSI (14) 57.05. On the upside, the 200 DMA at 0.7418 pressures from above on the wide then the 3-month uptrend at 0.7086 should be respected as well as the the 0.7017 November low and the September low is at 0.6940 for the downside levels.
AUD/USD is sideways in a tight range that developed after the bid from the 0.7200 level in mixed risk and a mixed dollar as commodities and stocks run the show in light volumes.
(Market News Provided by FXstreet)