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5 Jan 2015
AUD/USD selling resumes, 0.8050 eyed
FXStreet (Bali) - AUD/USD is pressing against session lows once again, currently at 0.8062, following a topside failure at the 0.81 handle, as a second wave of USD demand picks up across the board.
AUD was initially sold in early Asia, printing a fresh multi-year low at 0.8051, dogged by broad-based USD buying - EUR/USD collapse major contributor - , before a rebound worth over 50 pips to seek liquidity led to an opportunity to reset AUD shorts into strength, with the bear trend now resuming, with sellers eyeing 0.80.
Marc Chandler, Global Head of Currency Strategy at BBH, said: "Look for the Australian dollar to slip into the technically important zone between $0.7950 and $0.8000 in the next couple of weeks. The central bank governor has been quoted arguing for $0.7500. This is do-able, but it will likely take several months to achieve."
AUD was initially sold in early Asia, printing a fresh multi-year low at 0.8051, dogged by broad-based USD buying - EUR/USD collapse major contributor - , before a rebound worth over 50 pips to seek liquidity led to an opportunity to reset AUD shorts into strength, with the bear trend now resuming, with sellers eyeing 0.80.
Marc Chandler, Global Head of Currency Strategy at BBH, said: "Look for the Australian dollar to slip into the technically important zone between $0.7950 and $0.8000 in the next couple of weeks. The central bank governor has been quoted arguing for $0.7500. This is do-able, but it will likely take several months to achieve."