20 Aug 2013
AUD/USD lower at 0.9085; down 0.25% on risk aversion
FXstreet.com (Athens) - AUD/USD came under pressure today, due both to yesterday’s decidedly dovish tone of the RBA’s minutes and the markets ‘risk-off’ environment today.
AUD/USD sinks on heightened pre-FOMC volatility
The Aussie has probably suffered more than most since the general risk aversion that hit markets back in May and June. At the time back then it was still treading water above the 1.0000 mark but when it broke below there’s been somewhat of a one way ticket since then. Earlier this month after a dip below 0.9000 the Aussie bulls were starting to perk up again however overnight the RBA seems to have poured cold water on any prospect of a return to anywhere near the highs a couple of months ago. They were quite clear in saying that the exchange rate will play an important part in their policy decisions going forward and so traders have taken that as a signal that they favor a lower currency. What’s more, today was another day of ‘risk-off’ environment, as Fed is going to release its FOMC meeting minutes from July 30-31 this coming Wednesday’s night, and the market remains uncertain of the Fed’s QE tapering schedule.
AUD/USD Key levels
The ‘Aussie’ is now trading at 0.9085, downwards for a second consecutive day, after having hit a daily low as of 0.9024 at 7:00 GMT hours.The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 0.9030, 0.9008, 0.8994, and resistance at 0.9215, 0.9228 0.9257, respectively.
AUD/USD sinks on heightened pre-FOMC volatility
The Aussie has probably suffered more than most since the general risk aversion that hit markets back in May and June. At the time back then it was still treading water above the 1.0000 mark but when it broke below there’s been somewhat of a one way ticket since then. Earlier this month after a dip below 0.9000 the Aussie bulls were starting to perk up again however overnight the RBA seems to have poured cold water on any prospect of a return to anywhere near the highs a couple of months ago. They were quite clear in saying that the exchange rate will play an important part in their policy decisions going forward and so traders have taken that as a signal that they favor a lower currency. What’s more, today was another day of ‘risk-off’ environment, as Fed is going to release its FOMC meeting minutes from July 30-31 this coming Wednesday’s night, and the market remains uncertain of the Fed’s QE tapering schedule.
AUD/USD Key levels
The ‘Aussie’ is now trading at 0.9085, downwards for a second consecutive day, after having hit a daily low as of 0.9024 at 7:00 GMT hours.The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 0.9030, 0.9008, 0.8994, and resistance at 0.9215, 0.9228 0.9257, respectively.