Forex: AUD/USD bounces slightly off lows to 1.0272/74

FXstreet.com (Barcelona) - The AUD/USD has fallen sharply off its overnight highs (1.0339), losing its grip on the 1.0300 level during European trading Friday. Indeed, the recent plunge has bottomed out at the 1.0263 mark (intraday low), before rallying slightly to 1.0272/74 in these moments. The cross is now trading negatively, incurring a loss of -0.17% in what started as a promising day.

“Risks for the AUD appear to be building. However, the majority of these stem from global macro concerns and the recently weaker than expected global data pulse. The market is ignoring the financial aspects to valuation. A look this month at the behavior of the currency with respect to various macro indicators suggests financial factors are important. The AUD appears undeterred by changes in macro-type factors such as the gold price.” notes the ANZ Research Team.

According to Research Analyst Gareth Berry at UBS, “With the AUD/USD trending indicators bearish, resistance at 1.0359 should hold any upside. Support is at 1.0221 ahead of 1.0115 and only a closing break above 1.0359 would suggest a more prolonged recovery to 1.0444.”