Back
28 Jan 2015
AUD/USD trades below 0.8 levels
FXStreet (Mumbai) - The Australian dollar has erased part of its gains against the US dollar, taking the AUD/USD pair below 0.8 levels.
RBA rate cut talks overdone
The Aussie has bucked the broader market trend, by staying resilient against the US dollar today after the data showed core CPI in Australia rose 0.7% in Q4 2014, exceeding expectations of a 0.5% gain. Meanwhile, the headline CPI figure came-in at 0.2%, below expectation for a gain of 0.3%. However, the rise in core CPI erased speculation that the Reserve Bank of Australia (RBA) would cut interest rates. Aussie, thus gained against the USD.
The pair has erased part of its gains as we head towards the FOMC meet. No major surprises are expected, despite which the Treasury yields have recovered losses, thereby supporting the US dollar.
AUD/USD Technical Levels
The pair currently trades at 0.7992; up 0.71% for the day. The immediate resistance is seen at 0.8031 (Jan 7 low), above which gains could be extended to 0.8086 levels. On the flip side, a break below 0.7941 shall push the pair down to 0.7900 levels.
RBA rate cut talks overdone
The Aussie has bucked the broader market trend, by staying resilient against the US dollar today after the data showed core CPI in Australia rose 0.7% in Q4 2014, exceeding expectations of a 0.5% gain. Meanwhile, the headline CPI figure came-in at 0.2%, below expectation for a gain of 0.3%. However, the rise in core CPI erased speculation that the Reserve Bank of Australia (RBA) would cut interest rates. Aussie, thus gained against the USD.
The pair has erased part of its gains as we head towards the FOMC meet. No major surprises are expected, despite which the Treasury yields have recovered losses, thereby supporting the US dollar.
AUD/USD Technical Levels
The pair currently trades at 0.7992; up 0.71% for the day. The immediate resistance is seen at 0.8031 (Jan 7 low), above which gains could be extended to 0.8086 levels. On the flip side, a break below 0.7941 shall push the pair down to 0.7900 levels.