FXstreet.com (London) - AUD, often favoured for its high-yielding status, plummeted last session as anticipation for US rate hikes implied with it a narrowing of yield gap. A smaller gap would suggest less carry trade and less buyers of the high yielding Australian Dollar.
Last session the pair hit a 10 and a half week low against the Dollar and currently trades at 87.80, having fallen a further 23 pips so far in the Asian session.
Kshitij Consultancy gives us latest supports, after the pair dropped through two primary supports in the previous session: On the other hand if it continues to trade below 0.8900 and gains downside momentum, we might expect a break below the Support at 0.8820 and see a downmove towards 0.8770-50 in the coming sessions. The next significant level to watch for on the downside below 0.8820 is 0.8700 which is the Support seen on the monthly chart.
Weak gold prices also weighed on the Aussie in the last session. The precious metal fell below $1100 today as investors flocked towards USD. This session gold has traded relatively tightly, and has lost just $2.50, quoting at $1093.50.