A fresh round of selling sent AUD/USD to 0.8901, below last week’s low of 0.8907 and to the worst levels since August 29.
The Australian dollar is in a precarious spot and RBA Governor Stevens is likely to talk down the currency in an appearance later at the House Economics Committee. Barring that, a Fed taper would be a fresh reason to sell.
The good news is that technical support looms. First is a barrier at 0.8900 and that’s followed by the late-August low of 0.8892 followed by the cycle low 0.8848. AUD bears are also facing some severely oversold conditions and (perhaps a record) 8 straight weeks of declines.
Update: Fresh low at 0.8899 but now follow through on the break of the big figure.
