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Forex - AUD/USD slides on Bernanke comments

Published 07/17/2013, 10:23 PM
Updated 07/17/2013, 10:24 PM
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Investing.com - The Australian dollar traded noticeably lower against its U.S. rival during Thursday’s Asian session, following to a one-week lower following congressional testimony by Federal Reserve Chairman Ben Bernanke on Wednesday.

In Asian trading Thursday, AUD/USD slid 0.52% to 0.9194. The pair was likely to find support at 0.9036, Monday's low and resistance at 0.9306, the high of July 11.

The greenback gained steam against most its major rivals Wednesday after Fed Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course” In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

Strength for the U.S. dollar has carried over into the Asian session as the greenback is trading higher against nearly all of its major rivals with the so-called riskier currencies taking the brunt of the punishment.

The Aussie was boosted earlier this week after the Reserve Bank of Australia said in minutes from its latest policy meeting showed that policymakers believe the current stance of the bank's policy to be appropriate, sending the Aussie higher.

The RBA also said the inflation outlook was “slightly higher” due to the Aussie’s recent drop. However, two days of sour action for the Australian currency could be proof that its recent gains were short-lived.

Elsewhere, AUD/JPY dropped 0.33% to 91.73 while AUD/NZD inched down 0.07% to 1.1674.


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