22 Jan 2015
AUD/USD: Tokyo sales break Wed's low
FXStreet (Bali) - AUD/USD is under heavy selling pressure at the early going of the Tokyo session, dropping from just above 0.81 to a new 8-day low at 0.8071, as expectations for an RBA rate cut in February increase.
The recent sharp fall in the Australian Dollar came in response to the BoC rate cut, with market participants perceiving the move as a signal that RBA will soon follow suit given global deflationary pressures. As per today's potential AUD movers, the calendar is absent of any significant piece of data, with the only 2nd-tier release the Melbourne Institute Survey of Consumer Inflationary Expectations, published at 00 GMT, which fell by 0.2 percentage points to 3.2 per cent in January 2015 from 3.4 per cent in December 2014.
Jim Lannglands, Founder at FXCharts, notes: "Having been to a low of 0.8077, the Aud is currently hovering just below 0.8100 but has broken several important support levels and does look as though it could ratchet lower. It may be a sideways session given that all the attention is going to lie elsewhere, but the shorter term indicators do point lower, and if 0.8075 were to give way, then we are looking for a run towards the previous lows at 0.8067 (14 Jan) and then to the recent trend low of 0.8032 (7 Jan)."
The recent sharp fall in the Australian Dollar came in response to the BoC rate cut, with market participants perceiving the move as a signal that RBA will soon follow suit given global deflationary pressures. As per today's potential AUD movers, the calendar is absent of any significant piece of data, with the only 2nd-tier release the Melbourne Institute Survey of Consumer Inflationary Expectations, published at 00 GMT, which fell by 0.2 percentage points to 3.2 per cent in January 2015 from 3.4 per cent in December 2014.
Jim Lannglands, Founder at FXCharts, notes: "Having been to a low of 0.8077, the Aud is currently hovering just below 0.8100 but has broken several important support levels and does look as though it could ratchet lower. It may be a sideways session given that all the attention is going to lie elsewhere, but the shorter term indicators do point lower, and if 0.8075 were to give way, then we are looking for a run towards the previous lows at 0.8067 (14 Jan) and then to the recent trend low of 0.8032 (7 Jan)."