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11 Feb 2014
AUD/JPY testing 92 the handle; RSI 69
FXStreet (Guatemala) - AUD/JPY is testing the 92 handle with a surge from 91.40/50 territory.
AUD/JPY jumped on the back of yet further positive news for the Australian dollar where stops were sighted on the Major through 0.8980 onto the 0.90 handle. The AUD is recovering on the back of Australia’s business indexes and house prices, which are continuing to improve. Australia's business confidence continued to improve in January, posting its first rise in four months from 3 to 4, while business conditions remained strong, reaching an almost 3 year high, from 6 the last month to a Jan reading of 8. House prices read 3.4% on the index vs3.0% expected, boosting the dollar. Moreover, as strategists at RBS explained, the RBA was somewhat less dovish as they had expected last week. “The RBA looks firmly on hold for the time being”. They continued and explained that the economic surprises have been in line with their historical average, so there is scope for further good news to be priced into the AUD, starting with this week's employment report later this week. RSI 14 reads 68.98 and close to overbought territory on a momentum basis.
AUD/JPY jumped on the back of yet further positive news for the Australian dollar where stops were sighted on the Major through 0.8980 onto the 0.90 handle. The AUD is recovering on the back of Australia’s business indexes and house prices, which are continuing to improve. Australia's business confidence continued to improve in January, posting its first rise in four months from 3 to 4, while business conditions remained strong, reaching an almost 3 year high, from 6 the last month to a Jan reading of 8. House prices read 3.4% on the index vs3.0% expected, boosting the dollar. Moreover, as strategists at RBS explained, the RBA was somewhat less dovish as they had expected last week. “The RBA looks firmly on hold for the time being”. They continued and explained that the economic surprises have been in line with their historical average, so there is scope for further good news to be priced into the AUD, starting with this week's employment report later this week. RSI 14 reads 68.98 and close to overbought territory on a momentum basis.