15 Jul 2015
AUD/USD trading at lowest level in six years
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7370 with a high of 0.7490 and a low of 0.7352.
AUD/USD turned bearish in a 120 pip decline despite the up-tic in Chinese data overnight and initial bid before Yellen's hawkish testimony coupled with a generally downbeat commodity sector.
The Chinese data shed a positive tone overnight and gave some relief to the Aussie. Industrial Production and Retails Sales were slightly better than expectations while GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
Also, earlier in the week, NAB's positive June business survey was supporting the Aussie on the 0.74 handle. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey.
However, the downfall in the Aussie came today as Yellen indicated that rates will rise this year along with the BoC cutting interest rates which weighed across the commodities sector also, leaving the Aussie in highly bearish territory and the lowest levels since 2009. Valeria Bednarik, chief analyst at FXStreet explained that the 1 hour chart shows that the technical indicators have lost their bearish strength in extreme oversold territory, but are far from signaling a recovery at the time being. "In the 4 hours chart, the 20 SMA heads lower around 0.7430, while the Momentum indicator diverges from the price action, advancing below the 100 level, and the RSI indicator hovers around 37."
AUD/USD turned bearish in a 120 pip decline despite the up-tic in Chinese data overnight and initial bid before Yellen's hawkish testimony coupled with a generally downbeat commodity sector.
The Chinese data shed a positive tone overnight and gave some relief to the Aussie. Industrial Production and Retails Sales were slightly better than expectations while GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
Also, earlier in the week, NAB's positive June business survey was supporting the Aussie on the 0.74 handle. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey.
However, the downfall in the Aussie came today as Yellen indicated that rates will rise this year along with the BoC cutting interest rates which weighed across the commodities sector also, leaving the Aussie in highly bearish territory and the lowest levels since 2009. Valeria Bednarik, chief analyst at FXStreet explained that the 1 hour chart shows that the technical indicators have lost their bearish strength in extreme oversold territory, but are far from signaling a recovery at the time being. "In the 4 hours chart, the 20 SMA heads lower around 0.7430, while the Momentum indicator diverges from the price action, advancing below the 100 level, and the RSI indicator hovers around 37."