The Aussie slides as it can’t hold 80 cents
Dave Green • 1 min read
Yesterday we asked the question of the Aussie dollar, as to whether or not it could hold the key 80 cent level.
It’s well known the RBA are far from happy with the currency trading above 80, and they’ve done their best in the past to jawbone it, with the hopes of pushing it lower.
The RBA talk has worked over the past 12 months and the Aussie has fallen significantly.
However the last few weeks have seen some strength come back into the Aussie currency helped in part by a strong USD which has been up across the board.
Today we saw the release of PPI – Producer Price Index. QoQ came out slightly worse than expected at 0.5% versus 0.6% expected.
Overnight USD strength helped knock the AUD back down to earth after a dovish FOMC update sent it rocketing higher yesterday.
80 Cent to Hold for Now
It seems that 80 cents is going to prove to be a tough resistance level to crack for the Aussie for the time being.
For the rest of the Asian session, there is a bearish trend in place.
The ASX200 is doing is best to slide, as it's currently down more than 1.23% and deeply entrenched in the red for the day.