20 Jul 2015
AUD/USD: Heavy supply back as Gold in free-fall
FXStreet (Bali) - The Australian Dollar is being weighed by the collapse in the price of gold, with the Antipodean currency exchanging hands at 0.7352 session lows last against the Greenback, the out-performer in Asia.
Gold hammering a major burden for the Aussie
The $50 decline in the prices of gold, stop-loss driven, has stunned market participants. Despite technicals were suggesting that risk in Gold was heavily skewed to the downside, the magnitude of the down-move is nothing short of jaw-dropping, and it reminds us of the overstretched moves seen over 2 years ago in the summer of 2013, when the yellow-metal was aggressively sold by more than $200 in a matter of weeks during June.
AUD/USD technicals: Further downside likely
The AUD/USD has tested bids at 0.7352 trend lows - printed last week - and has since rebound some odd 3/4 pips, although judging by the key bearish breakout in Gold, and taking into account the selling bias in the Aussie since breaking into new trend lows a few weeks ago, nothing seems to suggests that persistent pressure will dissipate any time soon. The next key targets for sellers should be found at 0.73 and 0.7270 (Jan high, 2009).
Gold hammering a major burden for the Aussie
The $50 decline in the prices of gold, stop-loss driven, has stunned market participants. Despite technicals were suggesting that risk in Gold was heavily skewed to the downside, the magnitude of the down-move is nothing short of jaw-dropping, and it reminds us of the overstretched moves seen over 2 years ago in the summer of 2013, when the yellow-metal was aggressively sold by more than $200 in a matter of weeks during June.
AUD/USD technicals: Further downside likely
The AUD/USD has tested bids at 0.7352 trend lows - printed last week - and has since rebound some odd 3/4 pips, although judging by the key bearish breakout in Gold, and taking into account the selling bias in the Aussie since breaking into new trend lows a few weeks ago, nothing seems to suggests that persistent pressure will dissipate any time soon. The next key targets for sellers should be found at 0.73 and 0.7270 (Jan high, 2009).