Traders not convinced. Sellers more in control.
Yesterday the AUDUSD dipped below the 100 day MA at the 0.7494 level. That move was short lived however, and a rally ensued. When the price approached the 100 hour MA in the Asian Pacific session, the sellers entered (blue line in the chart below at 0.75417 currently).
The weaker US data today has sent the pair higher and that 100 hour MA was broken. However, it is back below. The sellers seem to be not giving up on this pair.
BNP is out with a report saying that the latest data is consistent with their bearish view. They target 0.7000 in the AUDUSD.
They say that although the Chinese PMI reports suggested the state of the industrial sector was somewhat improved, The Australian Q2 Capex and August retail sales were weaker and more bearish for the pair.
They add that "The data is consistent with our bearish AUD view targeting 0.70 in coming months but we continue to stress that global equities are the current key driver of AUDUSD so a fall in equities is likely necessary for AUDUSD to reach our target"
For other bank views, subscribe to eFX Plus by clicking here.
