FxWirePro: AUD/USD bounces from lows at 0.6996, good to buy dips
Overnight recovery in the Aussie lost steam after the latest poor Australia's building consents data dented investor sentiment Australian dollar edged up from a trough of $0.6934 hit on Tuesday, but gains stalled at $0.7…
Overnight recovery in the Aussie lost steam after the latest poor Australia's building consents data dented investor sentiment
Australian dollar edged up from a trough of $0.6934 hit on Tuesday, but gains stalled at $0.7020 and the pair slipped to hit session lows at 0.6996
The pair however found stubborn demand at lows and is currently trading just shy of day's high at 0.7018
Given the recent events, the RBA may be dovish at next Tuesday's meet, but has given no sign of change in stance yet
Speculators heavily bearish on the Aussie, more disappointing news could see the AUD fall past a fresh 6-1/2-year trough at 0.6892
On the day's charts, Australian dollar stood on a firmer footing on Wednesday underpinned by a bounce in stocks, Stochs are at oversold and show a bullish crossover
Immediate resistance is seen at 0.7042 (Sept 8 High) levels, above which gains could be extended to 0.7055 (20 DMA) and then 0.7096 (Sept 23 High)
Strong support on the downside is seen at 0.6937, with minor support seen at 0.6984 (Sept 23 Low) levels
Recommendation: Good to buy AUD/USD dips around 0.70, SL: 0.6975, TP: 0.7040
