In the recent dollar storm, there were was one currency that managed to hold its ground quite well: the Aussie.
This seems to be over now as the Aussie slips to a multi-month low. What are the next levels to watch?
The euro had Draghi to drag it down. The pound had the Scottish referendum polls. The yen had a weaker economy and less safe haven status. The New Zealand dollar had lower prices of milk.
The Aussie had strong GDP. It managed to touch 0.94 not that long ago: just on Friday, riding on temporary USD weakness following the weak NFP.
Recent data from Australia hasn’t been too good, but it surely cannot explain the downfall. NAB Business Confidence slipped from 10 to 8 points and home loans grew by only 0.3%, weaker than 1.1% expected. These are not top tier indicators and cannot explains the sell-off.
Well, things have changed:
It finally succumbed to pressure and free-fell below 0.9250, which was strong support. From there, it was all downhill, with the pair slipping under 0.92 and reaching a new low of 0.9187. This is the lowest since March.
The next support line is only at 0.9135. It is then followed by 0.9050, just before the round number of 0.90.
Below the round number, we find 0.8910. For more, see the Australian dollar prediction.
