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The Australian dollar continues retreating against the greenback. After holding on to the 0.9850 level, the pair is now looking to reach 0.98.

Australia’s shares ended lower due to lower gold prices. The gold stocks led the drop, and iron ore stocks such as BHP Billiton and Rio Tinto followed with smaller losses.  Steel futures fell to the lowest levels in 8 months in Shanghai.

The price of gold is struggling around $1400 and is under pressure.

For AUD/USD, 0.98 serves as support, and 0.9720 follows. 0.9850 now turns into resistance. For more levels, see the Aussie USD forecast.

No significant data was released in Australia around the recent fall. This is an extension on the fall on the Australian budget, and on the ongoing dollar rally.

Japan released better than expected GDP results: the economy grew by 0.9% in Q1 2013, which is a great growth rate in absolute terms, and it is also better than 0.7% that was expected. The news of the early success of “Abenomics” increases the appetite for more Japanese easing and more USD strength, indirectly hitting the Aussie.

More on the Aussie:

Here is a live chart of AUD/USD:[do action=”tradingviews” pair=”AUDUSD” interval=”60″/]