Forex: AUD/USD just below the opening price

In the wake of this week the AUD/USD was hit again, as investors priced in what happened last Friday, going to as low as 1.0204. Support there pulled the market back to the opening price, but price action remains subdued, quoting on "red" around 1.0220/30.

The economic calendar is pretty empty and the market will be watching for headlines regarding the US budget and Eurozone officials. EU Leaders will meet on Thursday night and the new Italian Parliament will be sworn in on Friday. Australia's housing data is due at 00:30 GMT.

Last week's rally failed at 1.0300 (38.2% retracement), but Commerzbank analysts remain unable to rule out a deeper retracement to tougher resistance at 1.0375/80 and at 1.0384 the 55 day ma, “where we should again see failure”, according to analyst Karen Jones, pointing to intraday support at 1.0194 ahead of 1.0117, and “our longer term outlook is negative”, targeting 0.9805 (2011-2012 support line and then 0.9404 the 2009 peak).