AUD/USD falls again to the lows for the day because the aussie stays heavy

From earlier: Australia GDP Q3 zero.three% versus zero.four% estimate

After the report was launched, the aussie dropped and ultimately took a run underneath the important thing short-term assist area of zero.6433-50. There was a slight bounce after as we started European buying and selling however now we’re seeing worth run again to the draw back.

If the technical break is reaffirmed, it strains up the pair to check each day assist at round zero.6389 subsequent with the August low of zero.6347 additionally in focus.

It has been a poor final two months for the aussie towards the greenback and that appears set to run additional in December, not less than for now.

The current slide within the Chinese language yuan can be arguably not serving to with general sentiment. And with the greenback holding steadier amid some gentle pushing and pulling this week, the cracks are beginning to present in AUD/USD as key technical ranges are challenged.

As for the RBA pricing, not an excessive amount of has modified within the instant time period. Nonetheless, merchants at the moment are seeing the primary price lower to be in April and now not in Might subsequent yr. So, there’s that. As for price cuts till July subsequent yr, merchants are seeing ~50 bps and that is not all too completely different from yesterday.

In any case, sellers at the moment are nicely in management with the opposite assist ranges famous above being those to be careful for subsequent.

The greenback normally is holding in a great place immediately, with USD/JPY additionally up zero.eight% to 150.85 now because the rebound features traction.

This text was written by Justin Low at www.ubaidahsan.com.



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