In the last few days the Australian dollar has enjoyed a strong move higher moving through the previous resistance level at 0.88 and reaching a three week high around 0.8980. In the last 24 hours it has settled and traded within a narrow range between 0.8950 and 0.8970. For the last couple of weeks the Australian dollar continued to make runs at the resistance level of 0.88 only to be rejected again and again and forced lower. To finish out last week and start this week the Australian dollar seemed content to remain steady and consolidate just below the key 0.88 level, after its strong fall over the last few months. For the best part of the last month the Australian dollar has established and traded within a narrow range roughly between 0.88 and the previous resistance level at 0.90. However for the last couple of weeks the Australian dollar has fallen sharply back down to the support level at 0.88 and pushed through moving to a multi-year low at 0.8660 a couple of weeks ago.
The Australian dollar seems determined to cling on to the 0.88 level and has given itself some reprieve with its surge higher in the last 24 hours. A couple of weeks ago it surged higher to a one week high near 0.8890 before returning back again to the key 0.88 level and below. A few weeks ago the Australian dollar was able to rally higher pushing through the resistance at 0.90 to a one month high near 0.91, however it has since returned to more familiar territory below the resistance levels at 0.90 and 0.88. After showing some resilience in early December moving to a one week high above 0.9150, the AUD/USD spent the next two weeks turning around sharply and falling heavily down to a then three month low close to 0.88.
After all of its steady good work in the middle of November which saw the AUD/USD steadily move higher from support at 0.93 back up to a one week high near 0.9450, the AUD/USD has since returned all of those gains and then some more. Throughout most of October the AUD/USD enjoyed a solid and steady move higher from the support level at 0.93 up to the resistance level at 0.95 and beyond to a high around 0.9760. It has been all down hill since then. Throughout the first half of September the AUD/USD enjoyed a solid run which was punctuated by a strong surge higher sending it to a then three month high just above 0.95. A couple of months ago the AUD/USD had been trying valiantly to stay above the support level at 0.89 as all week it placed downward pressure but was unable to sustain any break lower.
Australian retail sales topped forecasts for a fifth straight month in December adding to evidence that consumer spending is reviving in time to help cushion the economy from a cooling mining boom. Thursday's data from the Australian Bureau of Statistics also showed the country boasted its biggest trade surplus in two years in December as exports rose beyond all expectations. Despite all the talk of a Chinese slowdown, exports to the Asian colossus surged 29 percent to a record A$94 billion ($84 billion) for all of 2013. The upbeat news supported the Reserve Bank of Australia's (RBA) decision earlier this week to shut the door on further rate cuts and lifted the local dollar a third of a U.S. cent to a one-month peak at $0.8980.
AUD/USD Daily Chart " title="AUD/USD Daily Chart " width="474" height="234"> 
AUD/USD 4 Hourly Chart" title="AUD/USD 4 Hourly Chart" width="474" height="235">
AUD/USD February 6 at 22:00 GMT 0.8960 H: 0.8979 L: 0.8941
AUD/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 0.8650 | --- | --- | 0.9000 | 0.9080 | 0.9180 |
During the early hours of the Asian trading session on Friday, the AUD/USD is remaining quite steady right above 0.8950 after staying there for the last few days. The Australian dollar was in a free-fall for a lot of last year falling close to 20 cents. Current range: trading just above 0.8950 around 0.8960.
Further levels in both directions:
• Below: 0.8650.
• Above: 0.9000, 0.9080 and 0.9180.
OANDA’s Open Position Ratios
AUD/USD Position Ratios" title="AUD/USD Position Ratios" width="474" height="27">(Shows the ratio of long vs. short positions held for the AUD/USD among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
The long position ratio for the AUD/USD has dropped sharply back to 60% as the Australian dollar has surged higher to a three week high above 0.89. The trader sentiment remains in favour of long positions.
Economic Releases
- 00:30 AU Statement on Monetary Policy
- 05:00 JP Leading indicator (Prelim.) (Dec)
- 09:30 UK Industrial Production (Dec)
- 09:30 UK Manufacturing Production (Dec)
- 09:30 UK Trade Balance (Dec)
- 13:30 CA Net Change in Employment (Jan)
- 13:30 CA Unemployment (Jan)
- 13:30 US Non-farm & Private Payrolls (Jan)
- 13:30 US Unemployment (Jan)
- 15:00 UK NIESR GDP Est. (Jan)
- 20:00 US Consumer Credit (Dec)