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Forex - AUD/USD rebounds from 3-year lows

Published 07/03/2013, 09:34 PM
Updated 07/03/2013, 09:35 PM
AUD/USD
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AUD/JPY
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AUD/NZD
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Investing.com - The Australian dollar rebound a bit against its U.S. rival during Thursday’s Asian session, a day after the Aussie dipped to a three-year low against the greenback.

In Asian trading Thursday, AUD/USD inched up 0.04% to 0.9092. The pair was likely to find support at 0.9066 and resistance at 0.9190, the session high. Wednesday’s low was 0.9066.

Should the 90-cent level give out, selling pressure on the already downtrodden Aussie would probably accelerate due to what is likely a large amount of stop-loss orders placed at that price point.

AUD/USD at 0.9000 is significant also because that is the low end of some banks’ 2013 forecasts for the pair and if that price area is violated, already bearish forecasts for the Aussie could be trimmed further. Earlier this year, Goldman Sachs said a worst case scenario would be AUD/USD trading down to 0.8000, but not this year.

On Wednesday, Aussie weakened after RBA Governor Stevens said the board "deliberated for a very long time" on Tuesday before deciding to keep its key interest rate unchanged at a record low 2.75%, signalling the possibility for rate cuts in the near future.

Also in Australia, official data showed that retail sales rose 0.1% in May, less than the expected 0.3% increase, after a 0.1% fall the previous month.

A separate report showed that Australia's trade surplus expanded unexpectedly in May, rising to AUD0.67 billion from a surplus of AUD0.17 billion the previous month. Analysts had expected the trade balance to fall into a deficit of AUD0.05 billion in May.

Elsewhere, AUD/JPY nudged up 0.05% to 90.87 while AUD/NZD rose 0.11% to 1.1691.


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