29 Jul 2013
AUD/USD testing fresh lows around 0.9240
FXstreet.com (Edinburgh) -The Aussie dollar is now eroding overnight gains, dragging the AUD/USD to test session lows in the vicinity of 0.9240 before the opening bell in Europe.
AUD/USD eyes on Stevens
In light of next week’s RBA meeting, Governor G.Stevens will hold a speech tomorrow. “Our economists expect a 25 bp cut to the cash rate on Aug 6. With 18 bp of easing already priced in, there is room for further currency weakness, but a cut will not be the critical driver, and any currency weakness should be selective”, commented strategists at the Swiss lender UBS. Of course the recent rate cuts collaborated with the AUD bearishness, but it is worth noting that a stronger greenback supported by Fed’s tapering chatter plus a grim panorama from China were also key factors behind the steep decline of the pair.
AUD/USD levels to watch
As of writing the pair is down 0.08% at 0.9244 with the next support at 0.9227 (low Jul.26) ahead of 0.9213 9MA10d) and finally 0.9176 (MA21d). On the flip side, a break above 0.9296 (high Jul.26) would expose 0.9320 (high Jul.24).
AUD/USD eyes on Stevens
In light of next week’s RBA meeting, Governor G.Stevens will hold a speech tomorrow. “Our economists expect a 25 bp cut to the cash rate on Aug 6. With 18 bp of easing already priced in, there is room for further currency weakness, but a cut will not be the critical driver, and any currency weakness should be selective”, commented strategists at the Swiss lender UBS. Of course the recent rate cuts collaborated with the AUD bearishness, but it is worth noting that a stronger greenback supported by Fed’s tapering chatter plus a grim panorama from China were also key factors behind the steep decline of the pair.
AUD/USD levels to watch
As of writing the pair is down 0.08% at 0.9244 with the next support at 0.9227 (low Jul.26) ahead of 0.9213 9MA10d) and finally 0.9176 (MA21d). On the flip side, a break above 0.9296 (high Jul.26) would expose 0.9320 (high Jul.24).