FXstreet.com (Barcelona) - The Aussie has fallen further against the Greenback during the American session after the NFP worst than expected release, AUD/USD has dropped around 80 pips in the las hour from 0.8645 to post 2-week low at 0.8565. Currently the pair is trading around 0.8590/0.8600, 1.20% below today's opening price action.
AUD/USD's rally has capped at 0.8860, fresh 13 month high on early Asian session, and the pair has sold-off aggressively ever since, giving away more than 200 pips so far, dropping to levels around 0.8565 after the NFP worst that expected data.
U.S. non Farm Payrolls have declined by 263,000 in September, beating the Expert's expectations of a 175,000 drop, Unemployment rate has edged up to 9.8% in September from 9.7% in Augurs.
Nick Nasad, currency market analyst with CMS Forex, comments in the FXstreet.com NFP live coverage: The Aussie had a pretty strong slide since peaking above its resistance level near 0.8780, and setting a new one-year high. We fell back down into the range we in late September, and today's report actually helped the greenback to puncture the support of the sideways channel (0.8770 to 0.8585). The Australian economy is in better shape than others, as it has weathered the financial storm without even technically going into recession. The RBA meets next week and is coming closer to when it will begin to raise rates.
Nasad concludes: Though there are some concerns about what will happen when fiscal stimulus and loose monetary policy is unwound, the prospects for growth are good, which gives me some confidence about the Aussie in a longer term sense. Right now the wave of risk aversion may give us more sideways trading in the AUD/USD though a close today below 0.86 or a move below 0.8550 could be a catalyst for a further retraction.
Nasad adds a tip about the AUD/JPY: The AUD/JPY has also seen a sharp drop on weak carry trade as equities were hammered in yesterday's session and that weak performance in equities is continuing today.