The currency pairing has had a very good recovery since its August low and managed to reach the 50% Fibo retracement of the April-August down move. Bearish comments from RBA members and tightening Chinese financial conditions are putting a downer on the recent strength. We are also starting to see some USD strength back as well as the US job data is improving once again and the expectations of the FED tapering are starting to build. The next RBA meeting is on the 19th November which may suggest what is in store for the AUD.
The AUDUSD is sitting just below the 38.2% retracement from the August-October rally but other important supports are
0.9320 and
0.9300 as indicated on the chart. The 50day SMA has historically been a good support line but on Friday managed to penetrate through this, next up is the 100day so might want to watch out for this as well. Key resistances are
0.9425 and
0.9528.
The Gann fan is working well on the weekly chart which may keep a lid on thing but interestingly the MACD on the daily chart and the weekly are indicating conflicting stories.
Charts sourced from ig.com
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