Stock market lights a spark under AUD

A rise in stock markets is spilling over to some strength for AUD and EUR.

The Australian dollar is at the highs of the day at 1.0250 after falling as low as 1.0202 shortly after the open. The soft Chinese weekend data was a concern but the takeaway from most analysts is that Chinese New Year celebrations may have skewed the numbers.

AUD/USD offers extended from 1.0250 to 1.0260. Friday’s high of 1.0289 is the subsequent level of resistance.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

17 Comments

  1. Hi Adam,

    Good weekend?

    Not necessarily for me because I shorted these last week but is it right to say that the spark is a “sell the rallies job”?

  2. Ex-Detroit Mayor Kwame Kilpatrick found guilty of racketeering conspiracy & extortion ….And U want to buy the USD ? ……crazy country .)

  3. Cheers for that Adam, I was scratching my head wondering where the strength on aussie and kiwi came from! Out of curiosity (this may be a silly question) but how did you find this out? Were you looking at a specific indice?

  4. In US hours, I’m watching the S&P 500. It’s not moving much.

  5. It looks at bit flow-driven to me, piphunter so I wouldn’t be too worried.

  6. I think these levels that Adam, you have mentioned above are quite good to load some usd longs given the recent trends

  7. Thanks Adam, appreciate it!

  8. @AussieFX ..Are U a Monkey ? …..U scratch U’R Head ? :) thought only monkeys do that ;) Find any bugs ;)

  9. Thank you- what do you mean when you say “flow driven”

  10. Some kind of corporate order to buy AUD, maybe not tied to fundamentals.

  11. Stop hunt!^^

  12. Kiwi is staging a similar rally – they must have discovered oil in the kiwi/au land!^^

  13. Stocks aren’t moving that much. It looks rather like short covering or a raid on shorts. AUD/NZD is actually lower, to make things complete :D But kiwi/yen 79.30 has been now revisited. It was once a magic level.

  14. @andy Never had to scratch ur head? You should give it a shot. It helps when I’m wondering :D

  15. OK, seems now DAX is waking up too.

  16. @piphunter…Hey…that means..Flow is Driving the car. Understand ..dummy ;)@ max, Nzd always tracks Aud…where U been ? or R U ready for bedtime ? :)

  17. Rick: nzd was leading aud this time around, actually. Yet, nzd is somewhat oversold, so a move there actually makes sense a bit. Anyways, aud will continue to move erratically while it is still stuck in the triangle formation. Once it is out, then we’ll see a bit more clarity as was the case with gbp.

    For the moment, there is more clarity in nzd which will continue to move down in the weeks to come – though a 100 pip rally higher is very possible prior to the resumption of the move down. Aud – is so far away from major support/resistance lines that it really has hundreds of pips either way until some sort of clarity can be established.

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.