Australian dollar poised to go higher after crucial data tomorrow morning
The Australian currency has been holding steady during the past couple of weeks as skeptics have started to forecast further a protracted decline towards 0.85. As usual when too many skeptics appear it is time for a correction. This time isn't any different.
Crucial data for the currency will come out in verbal form as the Royal Bank of Australia will be releasing its meeting minutes in early trading on Tuesday. We will be keeping a close eye for any surprises, however we don't expect any.
The main theme is the ongoing weakness of the commodities sector. However commodities prices have largely bottomed out in the first half of January and have been on a steady rise since - especially precious metals, but Australia's major export copper is not far back.
We would be looking to buy daily calls for Tuesday on any dips towards the support levels that we have identified on our chart. The first on is at 0.9015, while the second comes below 0.90 just in case we hear some negative news from the central bank of Australia early tomorrow.
The main focus of the price is to test the highs marked in mid-January at 0.9090. We will be looking for a break to the upside to further boost our bullish bets. Until then we focus our attention on commodities prices and on Chinese data on Thursday.
Last week the Aussie has suffered a sharp decline to below 0.8940 after dismal employment figures, however that proved to be short lived as the rebound that followed was triggered by comments from a central bank official that unemployment at 6% was widely discounted by the Royal Bank of Australia.
We are currently thinking that the downside would only be exposed if we break below 0.8950 on a sustained hourly basis. The AUD/USD binary options forex pair is currently trading around 0.9030 awaiting some new triggers as the US trading session is non-existent today.