The December Australian Dollar is under pressure this morning, pressured by rising tensions in the Middle East and amid worries over the possibility of the U.S. fiscal cliff. Short-term selling pressure is emerging after longer-term concerns over declining export prices and the weaker global outlook helped form two tops at 1.0432 and 1.0446.
Some traders are also speculating that the Reserve Bank of Australia is applying subtle downward pressure on the Aussie by allowing foreign currency reserves to grow. Reports indicate that the RBA allowed its foreign currency holdings to rise by $457 million during the month.
Technically, the December Australian Dollar turned its main trend to down when the market crossed the last swing bottom at 1.0328. Additional selling pressure emerged when the uptrending Gann angle was broken at 1.3069.
Based on the main range of 1.0089 to 1.0446, expectations are for a further decline into a retracement zone at 1.0268 to 1.0225. Another uptrending Gann angle comes in at 1.0229, making 1.0229 to 1.0225 a possible support cluster.
High-Risk Demand
Besides the unfolding of a bearish technical picture, an overall drop in demand for higher-risk assets could push the Aussie down even further if warlike conditions continue to escalate in theMiddle East. This could cause a flight to safety rally into the U.S. Dollar, leading to additional pressure on all major currencies.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Mid East Tension, Fiscal Cliff Pound AUD
Published 11/15/2012, 11:10 AM
Updated 05/14/2017, 06:45 AM
Mid East Tension, Fiscal Cliff Pound AUD
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.