Australian dollar off parity vs greenback on profit booking

By | December 15 2010 2:28 AM

The Australian dollar that rose above parity on Tuesday helped by renewed risk appetite after the US Fed's decision to keep its accommodative policy intact for an extended period of time, but was down across the board in Asian trade on Wednesday as investors booked profit.

Data showed on Wednesday that Australia's new motor vehicles sales rose 0.2 percent in November compared with 0.9 percent fall in the previous month. On year, the sales fell 0.9 percent in November compared with a 3.3 percent jump in October.

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Data showed on Wednesday that Australia's new motor vehicles sales rose 0.2 percent in November compared with 0.9 percent fall in the previous month. On year, the sales fell 0.9 percent in November compared with a 3.3 percent jump in October.

At 2:25 am GMT, the AUD/USD was at 0.9939, off Tuesday's 1.0026, a 1-month high for the pair. Against the Japanese yen, the Aussie dollar was at 83.34, falling off previous session's 7-month high of 83.64.

Technically, AUD/USD has just tested the shoulder resistance but failed to break through. It is now targeting the 0.9893/0.9847 region as first support (S1) before testing the 0.9751/0.9707 region (S2), a break below which will confirm the conventional theory of reversing after a 'head and shoulders' pattern. The 200-day SMA falls within the S1 range.

On the 4-hour chart, momentum indicators are largely neutral.

The EUR/AUD was at 1.3417, above Tuesday's close of 1.3386 and the GBP/AUD was worth 1.5848, from previous close of 1.5795.

US November consumer price index and industrial production data could be crucial later in the New York session.

Data

Data showed on Wednesday that Australia's new motor vehicles sales rose 0.2 percent in November compared with 0.9 percent fall in the previous month. On year, the sales fell 0.9 percent in November compared with a 3.3 percent jump in October.