Aussie goes down under the support line
Posted 11-03-2009 at 08:27 AM by Yohay
The Australian dollar is also a victim of the dollar’s strength. The recent wave took the Aussie under the support line, despite a rate hike. What’s on the road ahead?
AUD/USD now trades at 0.8920, below the 0.8950 support line. Fresh dollar strength sent it below this line, sending it to levels last seen at the beginning of October. 0.8950 then served as a resistance line that Aussie bounced off, before continuing north. This line also served as a support line in 2008, and a resistance line in 2007.
Australia was the first country in the West to raise the interest rates last month in a surprising move. I then asked which country will be next. Tonight, Australia made a second move. Another 0.25% rate hike sent the Cash Rate to 3.5%, far above the next highest rate from New Zealand (2.5%) and much higher than the American, British and European rates.
Read the rest of the article the Aussie falling from support.
AUD/USD now trades at 0.8920, below the 0.8950 support line. Fresh dollar strength sent it below this line, sending it to levels last seen at the beginning of October. 0.8950 then served as a resistance line that Aussie bounced off, before continuing north. This line also served as a support line in 2008, and a resistance line in 2007.
Australia was the first country in the West to raise the interest rates last month in a surprising move. I then asked which country will be next. Tonight, Australia made a second move. Another 0.25% rate hike sent the Cash Rate to 3.5%, far above the next highest rate from New Zealand (2.5%) and much higher than the American, British and European rates.
Read the rest of the article the Aussie falling from support.
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