AUD holds its ground for now

It seems the AUD is the only currency that’s managed to hold its ground against the greenback this morning.

Source: Bloomberg

AUD/USD has managed to keep to the 0.9300 handle and largely held off the strength we’ve been seeing in the greenback.

There is significant support in the 0.9300 region, given it’s the 23.6% retracement of the rally from January lows to July highs. Additionally, there is an uptrend support line which extends from the January lows and all the way through August lows. While this support level looks like it will hold in the near term, traders could be looking to sell the pair on strength as the fundamentals on the AUD side are bearish and bullish on the USD side.

The key events for the AUD this week will be quarterly construction work on Wednesday and private capital expenditure on Thursday. These readings feed into GDP, and any further signs of weakness could see fresh AUD selling. Out of China we have industrial profits data on Thursday and, judging by the recent run in data, we could be in for further disappointment. If that’s the case, further selling could be on the cards for the AUD.

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