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2 Apr 2015
AUD/US: Fresh lows below 0.76, Aus trade figures non-event
FXStreet (Bali) - AUD/USD value has continued to deteriorate in early Tokyo, with a sharp slide towards a new low of 0.7575 minutes before the Australian trade balance figures, which came very much in line with expectations, providing no catalyst to reverse the downward course.
Growing expectations of further easing by the RBA at its next policy meeting on April 7th, together with the collapse in iron ore prices, which set new lows at US$49.50 per tonne Wed, and throwing into the mix the broad-based USD strength seen this week, all are factors weighing on a very weak AUD.
Jim Langlands, Founder at FXCharts, notes: "Below today’s 0.7581 low will find decent bids at the 11 Mar low at 0.7559, which will probably hold until Friday’s NFP. If wrong, a break of this would then hint at a run to the RBA’s stated target of 0.7500, and as before, I think we are eventually heading there and a fair bit lower over time."
Growing expectations of further easing by the RBA at its next policy meeting on April 7th, together with the collapse in iron ore prices, which set new lows at US$49.50 per tonne Wed, and throwing into the mix the broad-based USD strength seen this week, all are factors weighing on a very weak AUD.
Jim Langlands, Founder at FXCharts, notes: "Below today’s 0.7581 low will find decent bids at the 11 Mar low at 0.7559, which will probably hold until Friday’s NFP. If wrong, a break of this would then hint at a run to the RBA’s stated target of 0.7500, and as before, I think we are eventually heading there and a fair bit lower over time."