Search ForexCrunch

The Australian dollar surrendered to pressure (also coming from negative press) and finally lost the 0.9580 line that was support in June 2012, after an initial failed attempt beforehand.

The pair was already leaning lower after strong consumer confidence in the US boosted the US dollar across the board and the fell as low as 0.9527 before recovering.

The relatively weak Australian figures sealed the chances of recovery.

Here is wide look using the weekly chart, followed by the news that depressed the pair:

AUD USD Breaking to Lowest Since October 2011 on May 29 2013 weak construction work done strong US consumer confidence

The Melbourne Institute’s Leading Index rose by only 0.2% after climbing 0.6% in the previous month. The HIA New Home Sales figure was OK, rising 3.9% in comparison to 4.2% in the previous month, only a slight drop.

However, Construction Work Done was a big disappointment: it dropped 2% instead of rising 1.1% as estimated. This weighed on the pair.

In addition, PIMCO expects more cuts from the RBA as the decline in mining investment is expected to leave a significant economic hole. And, BHP decided to scale back a few coal projects:

The next significant level of support is the low seen in October 2011: 0.9388. On the way, the round number of 0.95 provides minor support. Later in the week, capital expenditure and building approvals will also rock the Aussie.

For more lines, events and analysis, see the  AUD/USD forecast. And here is a live hourly chart of the A$:

[do action=”tradingviews” pair=”AUDUSD” interval=”60″/]