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COZfx: AUD/USD edges lower during US shutdown concerns

Discussion in 'Analisa Fundamental' started by harryer, Oct 8, 2013.

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  1. harryer

    harryer Member

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    COZforex: The Australian dollar edged lower against its US counterpart on Monday, as ongoing concerns over the US government shutdown continued to dominate market sentiment.

    AUD/USD hit 0.9411 amid late Asian trade, the session low; the pair subsequently consolidated at 0.9405, falling 0.29%. COZforex senior currency strategist Ian • Quigley said, AUD/USD is predicted to find support at 0.9403, and a drop through could take it to the next support line of 0.9387. Meanwhile, the pair is predicted to find its first resistance at 0.9447, and a rise through could take it to the next resistance line of 0.9475.

    In commodities, LME Copper prices dropped 0.9% or $67.5/MT to $7148.0/MT. Aluminium prices rise 0.2% or $4.0/MT to $1789.5/MT.

    Earlier today, a report showed that Australia’s AiG performance of construction index advanced to a reading of 47.6 in September, highest level in almost 3.5 years, extending the picture of a nascent recovery gaining traction in the economy.

    Investors remained cautious after Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the US debt ceiling unless Democrats agree to talks about spending cuts.

    The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the US could risk an unprecedented default.

    In addition, delays in US economic data releases looked likely to fuel uncertainty over whether the Federal Reserve will hold off on any move to roll back its USD85 billion a month asset purchase program.

    The shutdown meant that Friday’s scheduled release of the US nonfarm payrolls report for September was postponed and no new date was given for the release of the data.

    (COZ forex UK)
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