The Australian Dollar (AUD) is bouncing around off the long-term lows around 0.6720 this morning against the US Dollar (USD) as it figures out market directional cues. Below 0.6660 and the cross is staring into the abyss of multi-year lows. Recent downside pressures in equity markets have spelt disaster for the AUD, the latest rhetoric from Governor Lowe isn’t helping the Aussie depreciating the currency. The Fed will most likely hike 75 points this week when they meet with chances of a 100 point move to 3.5% but as the cash rate is approaching its “normal” tightening policy settings we should see smaller moves ahead.
Current Level: 0.6732
Resistance: 0.6900
Support: 0.6650
Last Weeks Range: 0.6668-0.6914