22 Jan 2015
AUD/USD drops to lows around 0.8060
FXStreet (Edinburgh) - The Aussie dollar is intensifying its intraday downside on Thursday, sending AUD/USD to test session troughs in the 0.8060 area.
AUD/USD coming down from 0.8110
The pair is correcting lower after reaching session tops in the 0.8110 area soon after the Asian markets opened. The USD dynamics continue to be the main driver of the pair’s price action, although today’s docket might be adding some selling pressure: Consumer Inflation Expectations in Australia rose 3.2% in January, a tad lower than December’s 3.4% rise; i addition, New Home Sales tracked by HIA expanded 2.2% inter-month in November, down from 3.0%.
Following the recent rate cut by the BoC, there is the chance that market participants start to considering the fact that the RBA could follow suit. Strategist Sean Callow at Westpac commented, “Australia’s CPI dominates the week ahead for AUD but it might not be conclusive for the RBA decision in Feb, where Westpac’s base case remains a 25bp cash rate cut”.
AUD/USD levels to watch
At the moment the pair is losing 0.12% at 0.8078 and a breakdown of 0.8033 (2015 low Jan.7) would open the door to 0.8000 (low Jul.20 2009) and finally 0.7955 (low Jul.16 2009). On the flip side, the initial hurdle lines up at 0.8134 (low Jan.15) followed by 0.8146 (21-d MA) ahead of 0.8171 (10-d MA).
AUD/USD coming down from 0.8110
The pair is correcting lower after reaching session tops in the 0.8110 area soon after the Asian markets opened. The USD dynamics continue to be the main driver of the pair’s price action, although today’s docket might be adding some selling pressure: Consumer Inflation Expectations in Australia rose 3.2% in January, a tad lower than December’s 3.4% rise; i addition, New Home Sales tracked by HIA expanded 2.2% inter-month in November, down from 3.0%.
Following the recent rate cut by the BoC, there is the chance that market participants start to considering the fact that the RBA could follow suit. Strategist Sean Callow at Westpac commented, “Australia’s CPI dominates the week ahead for AUD but it might not be conclusive for the RBA decision in Feb, where Westpac’s base case remains a 25bp cash rate cut”.
AUD/USD levels to watch
At the moment the pair is losing 0.12% at 0.8078 and a breakdown of 0.8033 (2015 low Jan.7) would open the door to 0.8000 (low Jul.20 2009) and finally 0.7955 (low Jul.16 2009). On the flip side, the initial hurdle lines up at 0.8134 (low Jan.15) followed by 0.8146 (21-d MA) ahead of 0.8171 (10-d MA).