FXstreet.com (Barcelona) - Aussie has falling 2.00% along the day, from the opening price at 0.7196 to reach the 0.7051, 1-week low, and test the 0.7050 key level. Since last Monday, March 13, AUD/USD has fallen around 275 pips from the 0.7326, March 13 high to 1.7050, today's low.
Currently, the pair is trading around 0.7050/60 after moving in a small range between 0.7050/75 last two hours.
According to Valeria Bednarik, FXstreet.com collaborator, AUD/USD is falling on worst than expected Australian Q1 PPI report: Commodities currencies usually lead the way, and today, is not an exception: Australian dollar fell more than a 2% today, after a worst than expected PPI report for the Q1, with a decline of -0.4% (forecast was of 0.6%). Monetary minutes, to be release in less than 12 hours, and the chance of further rate cuts, will be carefully watched by traders. Canadian dollar also fell heavily following oil that broke under $50.0 a barrel and continues signaling further loses. Both currencies are favoring positive greenback sentiment across the board.
Bednarik Concludes: Aud/Usd fall reaches the 0.7050 and remains close to that level, still with no signs of reversal despite the oversold state the pair has in intra-day charts. Further falls will find support at the key 0.7000 zone, while a clear break under it, could send the pair to 0.6970 and 0.6925 zone. Corrections will find resistances at 0.7110 and then 0.7160, that should hold to keep the bearish longer term.
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