3 Jul 2013
AUD/USD breached 0.9100
Fxstreet.com (Edinburgh) - The Aussie dollar continues to fall on Wednesday, driving the AUD/USD to lows below 0.9100, levels last seen in August 2010.
AUD/USD pushed lower by dovish RBA
Recall that the RBS left intact the refi rate on Tuesday, broadly in line with market consensus, although the following communiqué was more dovish than expected, punishing the AUD. Mixed data in the domestic economy did not help either, as Retail Sales expanded less than expectations in May, contrasting a much higher trade surplus during the same period. “The mood is not much improved for AUD but it is now (finally) close to our estimate of fair value, 0.91-0.92… Our base case is a period of stabilization and modest gains in AUD/USD, to around 0.9300/50 multiday/week. Stretched short AUD positioning should help”, suggested Sean Callow, Strategist at Westpac.
AUD/USD levels to watch
As of writing the pair is down 0.79% at 0.9072 facing the next support at 0.9000 (psychological level) followed by 0.8871 (high Jul.2007) and finally 0.8770 (low Aug.2010). On the flip side, a breakout of 0.9228 (MA10d) would expose 0.9250 (high Jul.2) and then 0.9253 (high Jul.1).
AUD/USD pushed lower by dovish RBA
Recall that the RBS left intact the refi rate on Tuesday, broadly in line with market consensus, although the following communiqué was more dovish than expected, punishing the AUD. Mixed data in the domestic economy did not help either, as Retail Sales expanded less than expectations in May, contrasting a much higher trade surplus during the same period. “The mood is not much improved for AUD but it is now (finally) close to our estimate of fair value, 0.91-0.92… Our base case is a period of stabilization and modest gains in AUD/USD, to around 0.9300/50 multiday/week. Stretched short AUD positioning should help”, suggested Sean Callow, Strategist at Westpac.
AUD/USD levels to watch
As of writing the pair is down 0.79% at 0.9072 facing the next support at 0.9000 (psychological level) followed by 0.8871 (high Jul.2007) and finally 0.8770 (low Aug.2010). On the flip side, a breakout of 0.9228 (MA10d) would expose 0.9250 (high Jul.2) and then 0.9253 (high Jul.1).