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AUD/USD breaks down to new multi-year low on month end

The recovery is over for the Aussie dollar: AUD/USD plunged to a new 33 month low of 0.9133 as the week, month and quarter come to an end.

Where to next? The 0.90 line is not that far. With all the bearish forecasts on the Aussie dollar, on China and on the global economy, the pair could challenge this line as early as next week.

The previous break down followed the FOMC statement: Bernanke talked about tapering and this pushed AUD/USD to a low of 0.9163. It then recovered and even recaptured 0.93. However, it couldn’t hold on to its gains and now the downfall accelerates on adjustments that happen at the end of periods.

The US dollar also got a small boost from consumer confidence: the revised version of the University of Michigan’s figure was higher than the original publication: 84.1 instead of 82.7. It was also better than 83.1 expected.

Here is how it looks on the weekly chart:

AUD USD New multi year low June 28 2013 on end of month quarter fixing forex trading


Next week, the RBA convenes for its monthly rate decision. A “no change” decision is anticipated. The RBA began the avalanche by cutting the rates in May. The strong Aussie was one of the reasons for the crash. With the Aussie at its current shape, there is no need for further action.

Will the RBA choose to take the other direction and try to lift the Aussie? Probably not.

For more, here is the AUDUSD weekly forecast.

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.