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AUD/USD Falls to a 12 Week Low – Finally gives

AUD USD Falling to 12 Week Low February 6 2013
AUD USD Falling to 12 Week Low – Click image to enlarge

AUD/USD finally broke below the 1.0350 level that provided a great cushion in recent weeks. The last event to push the Aussie down under was the release of a weak retail sales report.

1.0350 now turns into resistance, and the next support level is close.

Retail sales fell by 0.2% in December, falling quite short of expectations for a rise of 0.3%. In addition, the figure for November was revised to the downside: from -0.1% to -0.2%.

Earlier in the week, the RBA left the interest rate unchanged at 3%, but the statement was not that optimistic. Rate cuts below the post-crisis low cannot be ruled out later in the year.

After losing 1.0350, the pair trades at 1.0318, and the next support line is at 1.0287. This is in turn closely followed by 1.0236. The bottom border of the wide range is 1.0150, which is still far. Various attempts to break above the upper border of 1.06 failed, and eventually led to the downfall.

For more on the Aussie, see the AUDUSD forecast.

It’s important to note that Chinese figures have less influence on the Aussie – recent figures from China have been rather upbeat, but the Aussie failed to rise.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.