AUD Trading Outlook
The Australian Dollar (AUD) the Aussie was able to rally as stocks moved higher with the commodity currency enjoying support in recent sessions. The RBA may not have to cut rates next year and if stocks rally the Aussie with its 4.25% interest rate will outperform. AUD/JPY is above Y79 but the key level Y80 as risk is slowly increased in the popular carry trade.
The Australian Dollar (AUD) the AUD/USD rallied to 1.0200 but then reversed as the EUR/USD and US Stocks changed direction. The risk currency is at the mercy of other markets but the underlying strength on the Australia economy is still there and the interest rate differential creates a constant support. Support is seen below Parity with large business hedging at rates under the key level.
The Australian Dollar (AUD) the Aussie was the back overnight breaking above 1.0000 and surging to 1.0100 after opening under 0.9900 in Asia. The risk currency was supported by RBA minutes which suggest the December rate cut was only a precaution given the European downside risk and that economic data in Australia did not support it. The outlook is linked to stocks and if gains continue then 1.0250 resistance will come into view.
The Australian Dollar (AUD) the Aussie was the worst hit currency from the risk aversion in the markets yesterday closing below 0.9900. The RBA minutes released in early Asia did offer some reprieve however and most analysts are calling for range trading over the holiday period in thin markets. AUD/JPY is finding solid support at Y77 and is a closely watch cross for the major.
The Australian Dollar (AUD) AUD/USD popped above 1.0000 briefly in the European session but this was quickly reversed and we saw the pair trade towards 0.9960 in late US weakness. The outlook is negative as the RBA cuts rates and Chinese growth is questioned and stock markets globally struggle. Stronger support is seen at 0.9850 and then 0.9600.
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