Wed, 02 Feb 2011 21:40:00 +0100

Forex: AUD/USD drawing back as Cyclone approaches

FXstreet.com (Barcelona) - The Australian Dollar looks poised to face a serious challenge to keep up recent upward momentum, as a massive cyclone gets ready to touch down Australian soil. After steady buying interest, AUD broke a lengthy range-bound yesterday, surging past parity to establish a fresh 1-month high at 1.0145.

On Wednesday, AUD/USD displayed a softer tone as traders anticipate a new catastrophe may loom near; the pair moved as low as 1.0050, new intra-day low. In late American session, price has managed to pick up to the upside, and is currently trading at 1.0080, arond 0.25% below it previous close.

Nick Nasad, Chief Market Analyst at FXTimes said: “Australia had gotten over the worst flooding in a century, the people there are bracing for a huge category 5 hurricane/cyclone – being compared to the US’ Hurricane Katrina. Winds are gusting up to 300 km/h, and there is warning of life and property damages”.

From the Australian Government Bureau of Meteorology, the following warning could be read: “ Severe TC Yasi is a large and very powerful tropical cyclone and poses an extremely serious threat to life and property within the warning area, between Cairns and Townsville. This impact is likely to be more life threatening than any experienced during recent generations”.

Technical Analysis (2011-02-02 20:30 GMT)
AUD/USD 1.0081/1.0084 - O: 0.9932 H: 0.9938 L: 0.9929 C: 0.9932
Trend	R3: 1.0136
	R2: 1.0111
	R1: 1.0086
	S1: 1.0027
	S2: 1.0052
	S3: 1.0078