AUD/USD Mixed Ahead of Data; Key Level at 0.9043

The Aussie recovered ample ground from its recent lows as fears over Dubai World’s debt have subsided. The United Arab Emirates Central Bank said Sunday that it would stand behind the local and foreign banks.

Move that eased some fears and saw investors bid up higher-yielding assets.

The Australian Dollar has an important day ahead, as we not only see the latest RBA rate decision, but also the building approval figures and the Chinese manufacturing purchasing managers index. All which should have strong influence in the pairs next near term move.

With Dubai’s recent debt issues and Aussie’s reliance centered on China’s economic growth, the RBA will have a tough decision in Today’s interest rate meeting. The market is divided as some see an increment of 25bps to 3.75%, while others expect no change at the December meeting.

AUD/USD, gaped higher and reached at 0.9194 high, before retracing in the European session by over 70 points.

The near term outlook is mixed as key economic events are expected to impact the pair. A neutral stance is the preferred strategy as the bias for tonight’s data is uncertain.

The pair broke below its bullish daily trend line Friday to shift the near term bias slightly. However, AUD/USD edged above this level at the start of the week but now trades back below the trend line. The result from tonight’s key events should point us in the right direction

From current levels, 0.9127 (pivot point), the pair finds initial support at 0.9040, followed by 0.8990 and 0.8950.

Above current levels (0.9127), the pair finds initial resistance at 0.9194, followed by 0.9241 and 0.9279.

TREND

Near Term: Neutral
Medium Term: Neutral
Long Term: Bullish

Trading levels in play:

Good Till NY Close

Risky Limit Buy (lower position size) @ 0.9043 Targets: T1 0.9063 – T2 0.9221 Risk: 0.8994
* Good Till NY Close After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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