14 Aug 2013
AUD/USD hovering over 0.9100
FXstreet.com (Edinburgh) -The Aussie dollar is extending its downside momentum on Wednesday, dragging the AUD/USD to the area of 0.9100.
AUD/USD in red despite data
Consumer Confidence index sponsored by Westpac advanced to 105.7 for the month of August vs. July’s 102.1, although the pair ignored the data and continued its march south, retracing last week’s upside. In the opinion of Alan Oster, Group Chief Economist at NAB, “It is our view that a modest inflation read in October will pave the way for another 25 bp cut in November, taking the cash rate to 2.25%. Beyond 2013, the risk will be for further rate cuts, provided the currency remains relatively elevated and assuming the economy responds slowly to the RBA’s stimulus”.
AUD/USD critical levels
At the moment the pair is losing 0.17% at 0.9096 with the next support at 0.9073 (low Aug.13) ahead of 0.9026 (high Aug.7) and finally 0.8972 (low Aug.8). On the upside, a break above 0.9149 (high Aug.13) would open the door to 0.9221 (high Aug.12) and then 0.9227 (low Jul.26).
AUD/USD in red despite data
Consumer Confidence index sponsored by Westpac advanced to 105.7 for the month of August vs. July’s 102.1, although the pair ignored the data and continued its march south, retracing last week’s upside. In the opinion of Alan Oster, Group Chief Economist at NAB, “It is our view that a modest inflation read in October will pave the way for another 25 bp cut in November, taking the cash rate to 2.25%. Beyond 2013, the risk will be for further rate cuts, provided the currency remains relatively elevated and assuming the economy responds slowly to the RBA’s stimulus”.
AUD/USD critical levels
At the moment the pair is losing 0.17% at 0.9096 with the next support at 0.9073 (low Aug.13) ahead of 0.9026 (high Aug.7) and finally 0.8972 (low Aug.8). On the upside, a break above 0.9149 (high Aug.13) would open the door to 0.9221 (high Aug.12) and then 0.9227 (low Jul.26).