AUD/USD – Remains at Support at 0.84
The Australian dollar (AUD) hasn’t had a magnificent last few weeks as it has fallen sharply and dropped to a fresh multi-year low to begin this week roughly 0.8420 before declining sharply over again in the last day to a new multi year low lower than 0.84. It has now stabled some above support about 0.84. Throughout the last week, it has some reliable support from 0.85, though this has given way to tempting supply. In the time of starting last week, it rallied back over 0.8650 again before going down during the rest of the week. In the week preceding, the Australian dollar was proficient to rally higher and return multi year lows roughly 0.8550 and in doing so has gone back within the past well-established trading assortment between 0.8650 and 0.88. Furthermore, the resistance level at 0.88 has positioned on repeated time over the past few months.
At the starting of September the Australian dollar confirmed several positive signs as it surged higher again falling from support below 0.93 and made a new four week high roughly 0.94 though that all now appears a distant memory. AUD touched a three-week high about 0.9480 at the ending of July following a reliable period which saw it surge higher at some stage in the resistance level at 0.9425 to the 3 week about 0.9480, before falling back towards that level. The Australian dollar had a reliable surge higher reaching a new eight-month high on top of 0.95 at the end of June, just to return nearly all of its gains in very swift time to end that week. As the middle of June the Australian dollar has done frequent attempts to break throughout the resistance level roughly 0.9425, though in spite of its best efforts it was discarded every time as the major level continued to rise, even while it has permitted the small moving to above 0.95.
Australia’s financial system grew at a slower than estimated pace in the third quarter, highlighting growing concerns about its perspective and call for the central bank to take on lessening measures. GDP for the July-September period increased 2.7% on year, government data clarified on Wednesday, falling short of a prediction in a Reuter’s survey for a 3.1% increase. This compares with an annual 3.1% in the second quarter. The Australian dollar moved to new four-year lows in retort, falling two-thirds of a U.S. cent to $0.8397, its weakest since mid-2010. “It is really an unacceptable performance and there are a lot of challenges in front of the domestic economy. The actual rate of GDP development is gradually, and you have also got the supposed measures of GDP growth slowing as well with the terms of trade down, business profits failing and family incomes slow-moving,” said Matthew Circosta, economist at Moody’s Analytics.