9 Jan 2014
AUD/USD breaks below 0.89 in early Asia
FXstreet.com (Bali) - AUD/USD has succumbed below 0.89 as the USD went broadly bid at the NA close, taking the exchange rate to a new weekly low of 0.8886, breaking marginally Jan 7 low.
AUD sentiment starting to turn sour
There is talk of some sizeable option strikes at the 0.89 handle disallowing much follow through though. The climb back towards 3% in US 10-yr bond yields along with concerns towards China/EM continue to act as a drag for the interest of the Australian Dollar. Coming up are Australian retail sales and building approvals at 00.30GMT, which should increase two-way business activity.
AUD/USD technicals
Technically, in view of Valeria Bedanrik, Chief Analyst at FXstreet.com, for technicals to signal more downside, "further confirmation is still required, with a break below 0.8870 support pointing for a return of the bearish momentum."
AUD sentiment starting to turn sour
There is talk of some sizeable option strikes at the 0.89 handle disallowing much follow through though. The climb back towards 3% in US 10-yr bond yields along with concerns towards China/EM continue to act as a drag for the interest of the Australian Dollar. Coming up are Australian retail sales and building approvals at 00.30GMT, which should increase two-way business activity.
AUD/USD technicals
Technically, in view of Valeria Bedanrik, Chief Analyst at FXstreet.com, for technicals to signal more downside, "further confirmation is still required, with a break below 0.8870 support pointing for a return of the bearish momentum."