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.
