31 Jan 2014
AUD/USD threatens 0.8700
FXstreet.com (Córdoba) - The AUD/USD was rejected once again from the 0.8825 area and came under pressure, erasing yesterday's gains during the European session.
After losing the 0.8800 mark, the AUD/USD extended its decline and accelerated losses on the break of the 0.8750 support zone. The pair has fallen to a low of 0.8703 so far, last seen Jan 27. At time of writing, the AUD/USD is trading at the 0.8710 zone, recording a 0.9% loss on the day but holding in positive territory for the week.
The Australian dollar is suffering today on the back of risk aversion amid emerging markets jitters and as investors gear up for the RBA meeting next week.
RBA next week
"The RBA's view on the recent spike in inflation will be important. If it is content to look through recent data as a temporary spike then it should be free to ease rates in 2H", says the BofA Merrill Lynch Global Research team. "Yet if it is viewed as more permanent it may give it much less room to move. With our forecast for the A$ at US$0.88 we currently take the former view".
After losing the 0.8800 mark, the AUD/USD extended its decline and accelerated losses on the break of the 0.8750 support zone. The pair has fallen to a low of 0.8703 so far, last seen Jan 27. At time of writing, the AUD/USD is trading at the 0.8710 zone, recording a 0.9% loss on the day but holding in positive territory for the week.
The Australian dollar is suffering today on the back of risk aversion amid emerging markets jitters and as investors gear up for the RBA meeting next week.
RBA next week
"The RBA's view on the recent spike in inflation will be important. If it is content to look through recent data as a temporary spike then it should be free to ease rates in 2H", says the BofA Merrill Lynch Global Research team. "Yet if it is viewed as more permanent it may give it much less room to move. With our forecast for the A$ at US$0.88 we currently take the former view".