After reaching 1.0461 on Tuesday, the June Australian dollar reversed course to finish lower for the day. The move came as no surprise since the main trend is down and the market was nearing retracement zone resistance at 1.0517 and a former top at 1.0529. In addition, downtrending Gann angle resistance would have probably stopped the rally at 1.0530.
Overnight, the Australian dollar broke through an uptrending Gann angle at 1.0336 indicating weakness. The break put the currency squarely on a downtrending Gann angle at 1.0320. A trade below this angle will weaken the market further while putting it on a course to reach a major 50 percent price level at 1.0108 on April 11.
The first leg down from the 1.0720 top was .0406 in 10 market days. A similar move from the 1.0529 top on March 19 will take the June Australian Dollar to 1.0123 on April 2 (See X). At this point, price and time will balance and the market may embark on another short-covering rally.
Fundamentally, the Aussie dollar weakened overnight as Asian stocks retreated from Tuesday’s high. With demand for higher-yielding assets falling, traders are expecting the move to continue into the New York trading session.
In addition to the weakening global equity markets, concern that Chinese manufacturing may slow over the near-term is putting further pressure on the market. Demand for Australian resources is expected to fall which is making traders cautious about holding long positions.
Traders will be watching Wednesday’s U.S. Durable Goods report today for clues of a strengthening economy. A strong report will underpin the U.S. dollar while pressuring the Aussie.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Drop In Demand For Higher Risk Pressuring June Australian Dollar
Published 03/29/2012, 05:35 AM
Updated 05/14/2017, 06:45 AM
Drop In Demand For Higher Risk Pressuring June Australian Dollar
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.