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AUD/USD posts lowest close since Sept 2010

FXstreet.com (Barcelona) - The AUD/USD suffered another day of steep losses, closing down 145 pips to finish at 0.9194.

AUD/USD support break not to be overlooked

Chris Tevere, CMT of Forex.com provided some of his thoughts on the recent price action of the AUD/USD. “AUDUSD was absolutely crushed after the FOMC interest rate announcement yesterday, taking the Aussie from 0.9550 to fresh 2013 lows (below 0.9325). More importantly, it closed below the critical 0.9385-0.9405 support zone, which saw the convergence of 2009 & April 2010 highs and the 2011 low,” Tevere went on conclude the sharp break is a extremely important situation that could send the pair much lower over the next few weeks.

Technical indicators point to further declines

The FXstreet.com trend index remains in slightly bearish set up on the daily chart, while the ob/os index reads oversold. Price remains well below both the 9 and 20 dma’s, while the RSI (14) is consolidating just below the 30 level and maintaining the bearish zone between 20 and 60. All of the above mentioned technical developments could help to limit any type of counter-trend bounce as we round out the week.

Session Recap: The Dollar advances unperturbed; Euro under pressure

The US stocks fell, bond yields rose, gold collapsed and the Greenback gained broadly. On Thursday the US dollar traded higher as investors are concerned that the Fed is decided to start QE tapering as soon as this year.
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Majority of economists surveyed by Bloomberg expect taper in September

According to Bloomberg polling, the majority of 54 economists surveyed by Bloomberg (44%) agree that September will be the month when the Federal Reserve starts to reduce the amount of bond purchases from current levels down to $65bn. Another 15% expect tapering to start in October, while 28% expect that to happen in December. The remaining 13% does not see the Fed tapering until next year.
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