AUD/USD dropped sharply after dovish comments from Glenn Stevens and is now in effort to recover. Will it make it back to the previous range before the week ends? Here’s a quick update on technicals, fundamentals and community trends.
* Post updated 16:00 GMT
AUD to USD sharp drop.
AUD/USD Technicals
- Asian session: AUD USD dropped sharply and bounced off the critical 0.9660 level. It later lost that as well.
- Current Range: 0.9540 to 0.9660.
- Further levels in both directions: Below 0.9540, 0.9460, 0.9366. Above 0.9660, 0.9725, 0.9863, 0.9915, 1.0000, 1.0080, 1.0180, 1.0220, 1.03.
- Parity is a big technical hurdle, but unlikely to be tackled in current conditions.
- Strong support at 0.9660 lost – bearish signal.
AUD/USD Fundamentals
- 22:30 (Thursday) Glenn Stevens’ dovish comment hurt the Aussie.
AUD/USD Sentiment
- North Korean attack on South Korea surprises the world and triggers risk aversive trading. The Aussie is sensitive to this news, and now suffers from the fresh Korean tensions.
- Contagion spreading: Fears that Spain and Italy will also need bailout packages impacts the whole world, not only the Euro. Portugal might receive aid soon.
- Light Thanksgiving trading means that the markets will probably hardly move until a major news, from Europe for example, can rock the markets on thin trading volume.
- Currensee Community: 92% are short, 8% are long. 358 open positions in real accounts trading this pair at the moment. The community continues seeing more falls in AUD/USD.
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