Back
25 Aug 2014
Aussie holds ground amid Greenback's strength
FXStreet (Bali) - AUD/USD exchange rate, currently flirting with 0.93, is barely changed from Friday's NY close, with the Australian Dollar once more proving exceptionally resilient to give much ground against a broadly bid US Dollar, as market participants keep pricing in faster rate hikes in the US.
Jim Langlands, Founder at FXCharts, shared his view on the pair, noting: "For now look for more consolidation with the chance of a squeeze higher, but looking for levels to sell the Aud, in line with the view of a continuation of the trend for a firmer US$, which would once again drag the Aud lower."
"As long as US 10 year yields remain at current levels though, at around 2.4%, the Aud should remain underpinned. I suspect yields need to regain 2.5% and then the 200 DMA at 2.65% before they really start to accelerate higher, and right now this looks somewhat unlikely", Jim added.
Jim Langlands, Founder at FXCharts, shared his view on the pair, noting: "For now look for more consolidation with the chance of a squeeze higher, but looking for levels to sell the Aud, in line with the view of a continuation of the trend for a firmer US$, which would once again drag the Aud lower."
"As long as US 10 year yields remain at current levels though, at around 2.4%, the Aud should remain underpinned. I suspect yields need to regain 2.5% and then the 200 DMA at 2.65% before they really start to accelerate higher, and right now this looks somewhat unlikely", Jim added.