26 Mar 2015
AUD/USD testing 0.78
FXStreet (Mumbai) - AUD/USD dives deeper in to red and remains among the weakest during the Asian session, as concerns about the nation's economic outlook continue to weigh on the Aussie after investment bank Citi group downgraded Aus growth forecasts.
AUD/USD retreats from 0.7841
Currently, the AUD/USD trades lower by -0.49%, testing fresh session lows at 0.7801 levels. The Aussie continues its descent mainly weighed down following Investment bank Citi Group’s downgrade of forecasts for the Australian economy, saying that they expect GDP growth of 2.4% this year instead of 2.7%, citing weak consumer spending, and slower corporate profit growth. The investment bank also lowered its CPI projections by 0.6 percentage points on Thursday to 1.9% this year.
Meanwhile, divergent monetary policy outlooks between the OZ and the US economies also weighs on the Aussie. Australia's central bank is due to announce its latest monetary-policy decision next week, and there is a good chance that the bank will lower the cash rate to a fresh record-low 2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7841 (Today’s High) levels, above which gains could be extended to 0.7889 levels. On the flip side, support is seen at 0.7761 levels from here it to 0.7702 levels.
AUD/USD retreats from 0.7841
Currently, the AUD/USD trades lower by -0.49%, testing fresh session lows at 0.7801 levels. The Aussie continues its descent mainly weighed down following Investment bank Citi Group’s downgrade of forecasts for the Australian economy, saying that they expect GDP growth of 2.4% this year instead of 2.7%, citing weak consumer spending, and slower corporate profit growth. The investment bank also lowered its CPI projections by 0.6 percentage points on Thursday to 1.9% this year.
Meanwhile, divergent monetary policy outlooks between the OZ and the US economies also weighs on the Aussie. Australia's central bank is due to announce its latest monetary-policy decision next week, and there is a good chance that the bank will lower the cash rate to a fresh record-low 2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7841 (Today’s High) levels, above which gains could be extended to 0.7889 levels. On the flip side, support is seen at 0.7761 levels from here it to 0.7702 levels.