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17 May 2013
AUD/USD continues to plummet, posts lowest daily close since June 6th, 2012
FXstreet.com (Barcelona) - The Aussie suffered another day of steep declines, closing down 92 pips at 0.9821 (lowest close since early June 2012).
Economic data out of the US came in weaker than expected, with the Philadelphia Fed Index printing at -5.2 vs. 2.4 expected, and CPI printing 1.7% vs. 1.8 expected. According to analysts at NAB Global Markets, “The Australian dollar rose after the weak data in the US (as the USD sold off against the DXY basket). But the comments by Williams saw the US dollar retrace and the AUD is back around 0.9810 in early Australian trading. For today, we would not be surprised to see the market testing the downside in what could well be a subdued but choppy day. Short covering/profit taking into this afternoon’s close could wind up the week. US dollar moves torule tonight, with Consumer data due.”
From a technical perspective, the pair has still not been able to show many signs of strength on the short term charts. According to analysts at FXStreet.com, “Australian dollar trades against the greenback around it daily low of 0.9796, maintaining the bearish bias seen over the past few weeks. The hourly chart shows indicators gaining bearish momentum while 20 SMA also gains bearish slope above current price, pointing for more slides ahead. In the 4 hours chart picture is also strongly bearish, with market eyeing strong mid term support around 0.9650 for next week.”
Economic data out of the US came in weaker than expected, with the Philadelphia Fed Index printing at -5.2 vs. 2.4 expected, and CPI printing 1.7% vs. 1.8 expected. According to analysts at NAB Global Markets, “The Australian dollar rose after the weak data in the US (as the USD sold off against the DXY basket). But the comments by Williams saw the US dollar retrace and the AUD is back around 0.9810 in early Australian trading. For today, we would not be surprised to see the market testing the downside in what could well be a subdued but choppy day. Short covering/profit taking into this afternoon’s close could wind up the week. US dollar moves torule tonight, with Consumer data due.”
From a technical perspective, the pair has still not been able to show many signs of strength on the short term charts. According to analysts at FXStreet.com, “Australian dollar trades against the greenback around it daily low of 0.9796, maintaining the bearish bias seen over the past few weeks. The hourly chart shows indicators gaining bearish momentum while 20 SMA also gains bearish slope above current price, pointing for more slides ahead. In the 4 hours chart picture is also strongly bearish, with market eyeing strong mid term support around 0.9650 for next week.”