AUD/USD Testing .9600 Weekly Support (May 28, 2013)

There is no report scheduled for release from Australia today, as this pair could be driven by U.S. data and market sentiment.

Gold prices have been dropping lately, and this doesn’t bode well for the Australian dollar. In addition, the U.S. will be printing its CB consumer confidence figure and is expected to show a huge increase in consumer optimism. The figure is slated to rise from 68.1 to 70.7 this month, following better than expected consumer sentiment data from the University of Michigan.

This might be enough to trigger strong dollar buying that could push AUD/USD below the .9600 handle. The last time it broke below a key support level (1.0200), it plummeted by 600 pips.

By Kate Curtis from Trader's Way