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9 Apr 2013
Forex: AUD/USD higher on China CPI
FXstreet.com (Barcelona) - With Australia NAB business conditions “weakest since May09,” says Sophia Rodrigues at MNI, “but conditions, confidence improving in construction,” she adds, and China CPI finally coming out bit worse than expected at +2.1% year on year when +2.4% was expected and coming from previous at +3.2%, AUD/USD is last at fresh weekly highs 1.0446.
The pair has bounced from the 1.0420 area where it had dipped following the NAB data, but it now spikes strongly on the back of inflation Chinese data. “It is an interesting juncture technically as the Aussie is in a 1.0380 - 1.05+ range for the past month or so and nothing seems to knock it very far at the moment,” says Gregory McKenna GlobalFX CEO and former Head of Currency Strategy at the NAB and Westpac.
“It's a question really of where else to put your cash it seems and both buyers and sellers are for the moment fairly comfortable with where the Aussie rests,” the analyst adds. “A break of the top of the range opens up a run toward 1.0640,” concludes Greg.
The pair has bounced from the 1.0420 area where it had dipped following the NAB data, but it now spikes strongly on the back of inflation Chinese data. “It is an interesting juncture technically as the Aussie is in a 1.0380 - 1.05+ range for the past month or so and nothing seems to knock it very far at the moment,” says Gregory McKenna GlobalFX CEO and former Head of Currency Strategy at the NAB and Westpac.
“It's a question really of where else to put your cash it seems and both buyers and sellers are for the moment fairly comfortable with where the Aussie rests,” the analyst adds. “A break of the top of the range opens up a run toward 1.0640,” concludes Greg.