19 Feb 2015
AUD/USD hovering around 0.7800
FXStreet (Córdoba) - AUD/USD managed to trim losses and climbed from the lowest level in two days back toward 0.7800. The pair peaked during the American session at 0.7810 but failed to hold and pulled back finding support at 0.7785.
Currently trades at 0.7792, down 0.30% for the day so far.The aussie dropped across the board after a warning from Standard and Poor’s about the fiscal situation but afterwards the Australian dollar managed to recover. Greenback is among the top performers on Thursday, limiting the recovery of AUD/USD.
According to Brown Brothers Harriman Strategy Team the warning from S&P is a reiteration of what it has said before. “With government debt around 20% of GDP, this is not an imminent threat. This is not to say we are bullish on the Australian dollar. On medium-term view, we expect the central bank’s downside objective of 0.7500 to be surpassed”. They consider that a rate cut by the Reserve Bank of Australia during the second quarter is still the most likely scenario.
Currently trades at 0.7792, down 0.30% for the day so far.The aussie dropped across the board after a warning from Standard and Poor’s about the fiscal situation but afterwards the Australian dollar managed to recover. Greenback is among the top performers on Thursday, limiting the recovery of AUD/USD.
According to Brown Brothers Harriman Strategy Team the warning from S&P is a reiteration of what it has said before. “With government debt around 20% of GDP, this is not an imminent threat. This is not to say we are bullish on the Australian dollar. On medium-term view, we expect the central bank’s downside objective of 0.7500 to be surpassed”. They consider that a rate cut by the Reserve Bank of Australia during the second quarter is still the most likely scenario.