Commodities Move Higher And The Rise Helps The AUD/USD

The AUDUSD has been pushed higher today on higher commodity prices.  The Australia economy relies on the export of industrial commodites to the likes of China and India.  Increases in demand prices often has a direct positive effect on the value of the AUDUSD;.

The price is currently testing a key resistance area.  The 100 hour moving average, 200 hour moving average and 38.2% retracement of the most recent move lower are all in the current area.

The 100 hour moving average comes in at 0.7973.  The 38.2% retracement of the move down from the high of  0.8262 to the low of 0.7826 comes in at the 0.7992.  The 200 hour moving average comes in at the 0.8005. The high reached has been 0.7995.

Intraday sellers should use the area as a place to take profit or initiate shorts.  A move above the range should, however, lead to increased momentum to the upside.  Commodity prices will of course be an influence.

Note after the last central bank decision, it was noted that a high AUD could threaten the recovery.  A higher AUD makes exports more expensive and therefore could choke off exports.  Although, the technicals are most important and higher commodities also are the major influences, on the currency in the short term, it may be a concern should the central bank officials intensify their comments.

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