The Australian Dollar (AUD) slumped to 0.5675 (1.7620) late in the week before recovering losses to close around the 0.5720 (1.7480) mark. We saw interest in the Aussie Monday to 0.5740 (1.7430) but overall risk flow put an end to any chance of the AUD gathering any momentum. Iron ore prices have dropped over the past few days as well as most commodity products which has underpinned the falls in the AUD. The Bank of England (BoE) came out and said large banks are no longer too large to fail putting consumers on the hook for potential failing institutions. The BoE official cash rate is Thursday with voting predictions of a 9-0 result to raise rates from 1.0% to 1.25%. We expect the cross to continue its recent swing lower to 0.5680 (1.7600) and lower over the week.
Current Level: 0.5714 (1.7500)
Resistance: 0.5790 (1.7780)
Support: 0.5625 (1.7270)
Last Weeks Range: 0.5672-0.5790 (1.7270-1.7628)