The Australian Dollar (AUD) is still one of the worst performing currencies. Tuesday’s RBA cash rate announcement was underwhelming, with Governor Lowe increasing the rate 25 points from 2.85% to 3.10% as predicted, against the British Pound (GBP) it was relatively unmoved post release. Comments from the central bank suggested there are still upside risks to inflation, expected to hit 8.0% by the end of the year. Third quarter growth printed at 0.6% down from 0.7% expected but healthy enough with spending still on the rise despite weaker commodity prices such as iron ore resulting in declines. The less attractive AUD has seen price push through long term support at 0.5525 (1.8100) levels to 0.5480 (1.8250) this morning the lowest since February this year. We expect to see more of the same.
Current Level: 0.5508 (1.8155)
Resistance: 0.5635 (1.8450)
Support: 0.5420 (1.7750)
Last Weeks Range: 0.5527-0.5649 (1.7702-1.8091)