AUDUSD Rejected at 0.70
Negative tone prevails for the AUDUSD pair during US session. The Aussie had capitalized USD weakness the last three trading days with a move which started from 0.69 and finished above 0.70. Today the pair failed to hold the 0.70 mark and retreated to 0.6967 breaching the 50 hour moving average. Pressure in AUDUSD it is mostly due to USD comeback after better ISM Non-Manufacturing data earlier today. In the macro front, Aussie quarterly GDP growth picked up a little in first quarter to 0.4% q/q, although annual growth continued to slow and is now down to 1.8%, the slowest pace since 2009 in the midst of the global financial crisis. A weak household sector, pressure from persistently low income growth, high debt and falling house prices are the main factors of the slowdown.
On the downside immediate support stands at the 100 hour moving average around 0.6957, while more bids will emerge at the 200 hour moving average at 0.6939. On the upside today top at 0.7006 is the first resistance, while more solid resistance stands at 0.7024 the 50 day moving average.