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11 Dec 2014
AUD/USD falls to 0.8210 as Stevens calls for an Aussie at 0.7500
FXStreet (San Francisco) - The AUD/USD fell to its lowest level since June 2010 at 0.8210 after a series of good economic data in the US and RBA governor Glenn Stevens said he wants a AUD/USD at 0.7500, not at 0.8500.
After the 75-pips drop from 0.8290, the AUD/USD strongly bounced at 0.8210 since the pair found buying interest that sent it back to 0.8270. Currently, AUD/USD is trading at 0.8275, down 0.62% on the day, having posted a daily high at 0.8378 and low at 0.8215.
AUD/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
Glenn Stevens for an AUD/USD at 0.7500
In an interview with The Australian Financial Review, Reserve Bank of Australia governor Glenn Stevens said he wants the Australian Dollar to fall to levels not seen in a decade at 0.7500. He also stated that an interest rate cut should be done in a manner that increase the confidence os the people instead of remembering economic problems.
Steven commented that the normal price of the Australian within the framework of a barrel of oil at $ 60 should be closer to 0.7500. And not at current levels.
However, the RBA governor affirmed: "The economy is not in recession, it’s not contracting, we’re not having hundreds of thousands of jobs lost over a year. So I think we need to be careful with the language, just to convey to people what’s going on." Maybe I'm wrong, but it's a pretty bullish comment. Isn't it?
AUD/USD levels
If the pair extends its bounce above 0.8290, it will find resistances at 0.8300, 0.8340 and 0.8365. To the downside, supports are at 0.8230, 0.8215 and 0.8200.
After the 75-pips drop from 0.8290, the AUD/USD strongly bounced at 0.8210 since the pair found buying interest that sent it back to 0.8270. Currently, AUD/USD is trading at 0.8275, down 0.62% on the day, having posted a daily high at 0.8378 and low at 0.8215.
AUD/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
Glenn Stevens for an AUD/USD at 0.7500
In an interview with The Australian Financial Review, Reserve Bank of Australia governor Glenn Stevens said he wants the Australian Dollar to fall to levels not seen in a decade at 0.7500. He also stated that an interest rate cut should be done in a manner that increase the confidence os the people instead of remembering economic problems.
Steven commented that the normal price of the Australian within the framework of a barrel of oil at $ 60 should be closer to 0.7500. And not at current levels.
However, the RBA governor affirmed: "The economy is not in recession, it’s not contracting, we’re not having hundreds of thousands of jobs lost over a year. So I think we need to be careful with the language, just to convey to people what’s going on." Maybe I'm wrong, but it's a pretty bullish comment. Isn't it?
AUD/USD levels
If the pair extends its bounce above 0.8290, it will find resistances at 0.8300, 0.8340 and 0.8365. To the downside, supports are at 0.8230, 0.8215 and 0.8200.