AUDUSD - Bounced off strong support

The AUDUSD had a good attempt on the 0.9300 level but it proved too strong to break moving our focus back on the upside resistances which are at 0.9425, 0.9525 and 0.9700 currently.

I'm still in a bearish mindset on this and see as these levels as opportunities to short the currency however.  Looking at the fundamentals, there is growing concern over tightening financial conditions in China, Australia's largest exporter, as the chinese repo rate hit 5.45% on 15th Nov, fuelling some speculation that the worlds second largest economy's growth could be cooling.



Not only that, but Australia's own domestic problems don't look too rosy either with unemployment at 5.7% with a record low interest rate of 2.5%, but the RBA hinted that there is still room for movement on this.  As for the USD, the FED tapering expectations continue to drive the relative strength of this.

Looking on the downside the supports are at 0.9300, 0.9200, 0.9050 and 0.8850.  I will also add that the MACD is still in bearish mode as it is still in negative territory and yet to cross back up.


Charts sourced from ig.com