Posted by Chris Advincula on Wed, Apr 01, 2015 @ 08:18 AM
The PremiereTrade Wizard’s decisive colors are great for analyzing any currency pair. Below is the AUD/USD currency pair.
Chart: WorldWideMarkets Alpha Trader/PremiereTrade
The Australian Dollar made good initial gains in the prior Asian session to the intraday high of 0.7663 from 0.7625 following the slightly better than expected China Manufacturing PMI +50.1 in March versus the forecast +49.7 compared to 49.9 in Feb. (1:00 GMT).
The aussie traded only briefly at 0.7663 as profit taking ensued. The gains were quickly capped with the RBA widely expected to cut interest rates at its meeting next week.
As Europe came in, further selling ensued as iron ore prices fell close to $50/ton. Interest rate futures imply there is an approximate 75% chance of the RBA rate cut of 25 basis points.
The aussie made a modest rebound to 0.7630 after the release of the lower than expected U.S. ADP Non-Farm Payroll March data +189k versus the forecast +227k. (12:30GMT)
The 14-day moving average support is 0.7590 and resistance at 0.7645. The most recent move to 0.7618 shows a short covering move. The market is heading for sideways trading as the Easter Holiday begins tomorrow. The market will be thin and confined to sideways trading.