The Australian Dollar traded lower again Tuesday against the US dollar as investors shunned risk. This follows mounting fears over a potential nuclear catastrophe and the impact the devastating Japanese earthquake will have on the Japanese and global economy.
The Aussie was trading at 0.9916, down 1.84% at the time of this writing.
Is this the long awaited Aussie correction?
Here’s a quick update on technicals, fundamentals and community trends.
AUD/USD Technicals
- Previous sessions: The Aussie traded sideways and slightly higher throughout much of the day, briefly dropping to a low of 0.9816 in the early afternoon and then rebounding to its current levels.
- Current range: 0.9816- 1.0093
- Further levels: Below: 0.9872, 0.9887, 0.9898 Above: 0.9924, 0.9939, 0.9950
- AUD / USD likely to find support at today’s low of 0.9816, and resistance at 1.0159.
AUD/USD Fundamentals
- 8:30 US Building Permits Exp. 0.58M Vs. 0.56M
- 8:30 US PPI m/m Exp.0.7% Vs. 0.8%
- 8:30 US Core PPI m/m Exp.0.2% Vs. 0.5%
- 8:30 US Current Account Exp.-111B Vs. -127B
- 8:30 US Housing Starts Exp.0.58M Vs. 0.60M
- 10:30 US Crude Oil Inventories Exp.1.8M Vs. 2.5M
- 8:30 Australia RBA Bulletin
* All times are GMT.
For the major events due later in the week, see the AUD/USD forecast.
AUD/USD Sentiment
- Concerns grow over the status of the Nuclear Power Plants in Japan. Investors are concerned over the possibility of a real nuclear disaster.
- Investors are seeking the safety of the US Dollar and avoiding risk.
- Japan is beginning to assess the real level of damage and devastation caused by the massive earthquake. Investors are worried about the negative impact the earthquake will have on the global economy in general and Japanese economy in particular.
Currensee Community: 84% are short, 16% are long. 398 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.
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