- AUD/USD stalled declines and held strong 20-DMA support at 0.7667 to edge higher.
- Aussie dented on a sharp slowdown in the private sector credit growth. But upbeat current account deficit lent support.
- Australia's private sector credit printed at 0.2% m/m in January compared to 0.5% expected and down prior 0.7%.
- While, Australia's Current Account deficit narrowed to AUD 3.9 bln from prior AUD 10.2 bln, better than forecasts for deficit to come in at AUD 4 bln.
- Trend remains higher, but bearish RSI divergence raises scope for downside in the pair.
- We see reversal in trend only on break below 20-DMA at 0.7667. Test of 100-DMA at 0.7512 then likely.
- On the flipside, breakout above 5-DMA at 0.7688 could see test of trendline resistance at 0.7745 and then 0.7778 (Nov 8 high).
Support levels - 0.7665 (20-DMA), 0.7603 (23.6% Fib retrace of 0.7161 to 0.7740 rally), 0.7550 (Feb 1st low)
Resistance levels - 0.7688 (5-DMA), 0.77, 0.7725 (Trendline), 0.7778 (Nov 8 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Neutral Neutral
1D Neutral Neutral
1W Bullish Neutral
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -8.94129(Neutral), while Hourly USD Spot Index was at -31.0795 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
