Wheat and Gold Are Feeling Downside Pressure as the Dollar Strengthens

Published 07/08/2008, 02:46 PM
Updated 05/14/2017, 06:45 AM

Weaker commodity prices along with a slow down in the Australian economy are putting pressure on the AUD/USD.  

Key exports such as wheat and gold are feeling downside pressure as the Dollar strengthens.  A report showing a slowdown in construction and another showing fewer job-vacancy ads is also causing traders to believe that the Reserve Bank of Australia may be through raising rates the rest of the year.

Although a couple of weeks ago this market was poised to breakout over .9700 on its way to par, the market has not been getting any bullish news lately.  

Chart watchers expect the market to pull back into a support zone at .9497 to .9457.  The main trend is still up so there may be some technical buying in this retracement zone.

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