Beaten up and bloodied Australian dollar staggaring into the weekend

Watching the Australian dollar today is like watching a boxer who is knocked out on his feet and trying to hang on until the end of the round.

Longs continue to throw in the towel as the pair falls below 0.9150 to the lowest since early September. It will be the fifth consecutive week of declines.

AUDUSD weekly chart

AUDUSD weekly chart

I wrote yesterday that the Australian dollar was like a falling knife that’s on fire and covered in poison.

The Australian calendar is very quiet next week but there is a speech from an RBA deputy on Monday. If declines continue, the next major support level on my charts is the 100-month moving average at 0.8936.

Author: Adam Button

Adam Button is the editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

2 Comments

  1. yea it is true,
    I am wondered…why Euro and GBP still Hi…and those trader want to give the impresion it is higher…? Are they really want to fool peoples….?
    ECB earlier this week and also last week already screeming want lower Euro….., But they did it the wrong way…..(Using the false news and off course real action SELLING – in my belief).
    Ohers country. such as ..Australia, CANADA, Japan, etc….already weaken their currencies…because they can not afford to be beaten by the USA that used QE as their mantra to lower the USD…,;
    earliier. today .BOE Dale on the news..that UK is in the corner…, because those trader..want to see..GBP to be higher…, wkwkwkwkwkwk
    I am sure…some Funds..will get burn next week……//
    I am waiting to enter the trade also.- sell..sell .but not this friday…dangerous, off corse.-
    cheers,

  2. hi ADAM can’t agree more with you.
    aussie for the pst few years have been acting like a rocket for no good reason except the China growth factor.

    even so,why should aussie be that high when its economy is not that big?
    it was purely YIELD RIDING for the most part.
    so as interst in US and elsewhere begin to rise while aussie interest get pared lower,i can see aussie back to more logical levels of low 80s or high 70s.

    even RBA thinks so.

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