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Session recap: Aussie upside tear dominates Asian session Tuesday

FXstreet.com (Barcelona) - Overly bearish traders of the Aussie Dollar are running for cover in light holiday trading on Tuesday in Asia after surprisingly positive Aussie credit data were released and technical targets serve as magnets for the Aussie crosses.

Aussie Dollar and British Pound claim “big mover” status in Tuesday’s Asian session

The Aussie Dollar is obviously the big mover of the Asian session Tuesday, but the British Pound is not far behind – but in the opposite direction.

The upside movement in the Aussie Dollar is clearly linked to a combination of factors including bullish Aussie Private Credit data, an oversold technical condition and technical pattern set-ups. The movement in the Pound cannot be explained by any data or technical set-ups, but it was certainly sporting an overbought condition in the short-term. The Yen is also moving – perhaps also a matter of very oversold technical conditions.

Main headlines in Asia:

EUR/USD flat after Monday’s gains; ST resistance 1.3914; LT Elliott Wave target 1.4400

AUD/USD on upswing – likely now in “c” wave of “abc” upside correction; resistance 0.8990

GBP/AUD pulling back following good Aussie credit data; 1.8729 remains resistance

EUR/AUD on the verge of testing ST “correction support” at 1.5432

AUD/USD pressing to session highs following data; bulls eyeing resistance at 0.8990

The AUD/USD is ripping higher in light, pre-holiday trade as overly bearish traders may have been caught off guard by the surprisingly bad pending home sales data in the US and the surprisingly good credit data in Australia.
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EUR/USD trying to rally off of very short-term support at 1.3793

The EUR/USD is thus far doing a good job of holding up above short-term support at 1.3793. Technicians say that if it can hold up above that level or lower support at 1.3733, a run back up to 1.3806 to 1.3873 is likely in the cards.
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