The Australian dollar is being pushed and pulled by countervailing factors, in summary:
- Iron ore markets have been extremely volatile (iron ore is Australia's major export to China), but are tumbling from their highs earlier this month
- Relations with China have been steadily drip-feed deteriorating
- The RBA is increasingly being seen as a laggard globally on the prospects fro tightening policy ... NZ, UK, perhaps even the US given the run of data are all ahead
- US yield rose overnight on good data, prospects for more fiscal spending
Resistance levels:
- 0.7755 initially then 70/75, 0.7795/0.7800
Support levels:
- 0.7720/25 then 05/10 and lower down 0.7675
