The Australian dollar is under pressure today on the back of weaker commodity prices, following on from last Friday’s pullback after the currency made a run for US82c.
Iron ore, Australia’s biggest commodity slumped 3 percent on Friday with some analysts predicting that it may have reached a peak.
The savior of the Australian dollar against the greenback may be hurricane Irma which is pounding the coast of Florida and is likely to keep the US dollar under pressure.
From a technical point of view the Aussie dollar is looking vulnerable after last Friday’s rejection at the US81.22c level and a further pullback below US80c is possible.
While fundamentals contributed to the Aussie’s late slide, Greg McKenna, chief market strategist at AxiTrader, says the Aussie is looking vulnerable from a technical and positioning perspective.
“The pin bar on the daily charts looks awful from a technical perspective,” said Greg McKenna, chief market strategist at AxiTrader.
“It’s probably too early to call a top just yet given US dollar weakness, but with speculative accounts still very long there is room for a decent pullback toward 80 cents, then 0.7960, within an overall trend higher.” he added.
