AUD-USD prediction monday may 14 2012

forex trading outlook today - AUD-USD prediction monday may 14 2012 : Aussie dollar is holding steady above parity against USD last at 1.0010 bids, after spiking to the upside on China PBoC cut RRR 50 bps to 20$ Saturday, though as Andrew M. Spencer from IFR Markets say, it was "short lived". According to Reuters: "China's central bank cut the amount of cash that banks must hold as reserves on Saturday."

"This is a welcome but modest measure, the impact on the economy likely to be in 6-9 months," Westpac Bank Senior Strategist Imre Speizer says.

Andrew from IFR calls for a target to the downside in the case of a break lower at 0.9952, where 61.8% Fibo retrace stands of last daily Oct/Feb upleg, noting also "Barriers & exporter interest around parity hold at present."

Political uncertainty in Europe is taking USD higher across the board, with EUR/USD hitting fresh 14-week lows below the 1.2900. Focus now for the Aussie goes for tomorrow's RBA monetary policy meeting minutes at 01:30 GM.

Immediate support for AUD/USD to the downside comes at psychological level at parity, followed by Nov 17 lows 0.9973, and Nov 18 lows 0.9964. Resistance to the upside comes at Wednesday's lows 1.0020, followed by Dec 29/Thursday's lows 1.0044/47, and Monday's lows 1.0095.

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