The AUD/USD continues to show little movement so far this week, as the pair trades in the mid-0.92 range late in Tuesday’s European session. On the release front, US Core Durable Goods slipped to a four-month low. We’ll get a look at CB Consumer Confidence later in the day. The markets are expecting another strong reading in the April release. There are no Australian releases on Tuesday.
The US consumer continues to be optimistic, which is good news for the US recovery. On Tuesday, CB Consumer Confidence continued to look strong as the key indicator improved to 83.0 points in April, which was within expectations. This was the third straight reading above the 80-point level. Meanwhile, the Standard & Poor’s/Case-Shiller house price index posted a strong gain of 12.4%, surpassing the estimate of 11.9%. The markets are keeping a close eye on Thursday’s events, with the release of Preliminary GDP and the all-important Unemployment Claims.
In Australia, Construction Work Done bounced back from a decline in March and posted a gain of 0.3% in April. This beat the estimate of -0.3%. MI Leading Index, a minor indicator came in at -0.5%. Early on Thursday, we’ll get a look at Private Capital Expenditure , the highlight of the week. The markets are expecting another second straight decline in Q1. Will the indicator surprise the markets?
AUD/USD May 28 at 13:10 GMT
AUD/USD 0.9234 H: 0.9271 L: 0.9222
AUD/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 0.9000 | 0.9119 | 0.9229 | 0.9361 | 0.9446 | 0.9617 |
- On the downside, 0.9229 is under strong pressure. There is stronger support at 0.9119.
- 0.9361 continues to provide strong resistance.
Further levels in both directions:
- Below: 0.9229, 0.9119, 0.9000, 0.8893 and 0.8757
- Above: 0.9361, 0.9446 and 0.9617 and 0.9757
OANDA’s Open Positions Ratio
AUD/USD ratio continues to point to gains in short positions on Wednesday, a trend we have seen all week. This is consistent with the movement from the pair, which has lost ground. The ratio has a strong majority of long positions, indicative of trader bias towards the Australian dollar reversing directions and moving upwards.
AUD/USD has softened on Wednesday. The pair has edged lower in the European session.
AUD/USD Fundamentals
- 00:30 Australian MI Leading Index. Actual -0.5%.
- 1:30 Construction Work Done. Estimate -0.3%. Actual -0.3%.
*Key releases are highlighted in bold
*All release times are GMT