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24 Dec 2014
AUD/USD resting up on the 0.81 handle
FXStreet (Guatemala) - AUD/USD is trading at 0.8111, up 0.19% on the day, having posted a daily high at 0.8126 and low at 0.8094.
AUD/USD is reluctant to go down and has held the 0.81 handle on a number of attempts to the downside, albeit lacking volume. We are taking a rest at these levels while most of the world is putting their feet up for the Christmas break, while the greenback remains dominant due to the markets demand after the US GDP surprised in 3Q third read yesterday by 5% q/q annualised vs. 4.3% consensus and 3.9% previous. US 10-year yields were almost at 2% on 16th December. Now they are around 2.25% and towards three-week highs.
Trading will be light into the New Year when we will expect more of the same from the greenback along a theme of divergence between the Central Banks.
The RBA is repeatedly talking the Aussie down and suggest the currency is above fundamental value, sighting 0.77c to be an appropriate level. The economy may even require a rate cut as 2015 gets underway while the Fed are expected to act accordingly and raise rates in the second half of the year.
AUD/USD is reluctant to go down and has held the 0.81 handle on a number of attempts to the downside, albeit lacking volume. We are taking a rest at these levels while most of the world is putting their feet up for the Christmas break, while the greenback remains dominant due to the markets demand after the US GDP surprised in 3Q third read yesterday by 5% q/q annualised vs. 4.3% consensus and 3.9% previous. US 10-year yields were almost at 2% on 16th December. Now they are around 2.25% and towards three-week highs.
Trading will be light into the New Year when we will expect more of the same from the greenback along a theme of divergence between the Central Banks.
The RBA is repeatedly talking the Aussie down and suggest the currency is above fundamental value, sighting 0.77c to be an appropriate level. The economy may even require a rate cut as 2015 gets underway while the Fed are expected to act accordingly and raise rates in the second half of the year.