Back
22 Jan 2015
AUD/USD testing the 0.8000 psychological level
FXStreet (Guatemala) - AUD/USD is currently trading at 0.8000 and down 0.24% on the day making five year lows.
AUD/USD has been trodden on, triggering stop losses down to test the less committed bulls at the psychological 0.8000 target. The pair has crossed the line, managing a score at 0.7995 so far. Gold has taken out some profits after an impressive rally overnight, but the real catalyst is likely to be concerns over the RBA's foresight in respect to its interest rate policy and global growth concerns affecting the banks inflation target of between 2-3%, threatened by deflationary pressures both domestically and globally. The markets only need to turn back to yesterday's events to see how the BoC surprised markets by cutting their interest rates by 0.25% - this has got the market nervous.
On the other hand, we have seen how the ECB are handling their own deflationary concerns, and by pumping in the sovereign QE, this could transpire into flows leaving the EU and heading across into the higher yielders which would directly or indirectly support the Aussie but that will not come until March. Moreover, technically, should the 0.8000 really give out, there is the long term double Fibonacci support at 0.7950/30 to conquer yet.
AUD/USD has been trodden on, triggering stop losses down to test the less committed bulls at the psychological 0.8000 target. The pair has crossed the line, managing a score at 0.7995 so far. Gold has taken out some profits after an impressive rally overnight, but the real catalyst is likely to be concerns over the RBA's foresight in respect to its interest rate policy and global growth concerns affecting the banks inflation target of between 2-3%, threatened by deflationary pressures both domestically and globally. The markets only need to turn back to yesterday's events to see how the BoC surprised markets by cutting their interest rates by 0.25% - this has got the market nervous.
On the other hand, we have seen how the ECB are handling their own deflationary concerns, and by pumping in the sovereign QE, this could transpire into flows leaving the EU and heading across into the higher yielders which would directly or indirectly support the Aussie but that will not come until March. Moreover, technically, should the 0.8000 really give out, there is the long term double Fibonacci support at 0.7950/30 to conquer yet.