The Australian Dollar Falls, But Stays In Its Range On Hourly Charts
March 16, 2010 5:47 AM
The AUD/USD fell almost a point from the Asian session opening till the European close. The main reason of course is the falling commodities, while the Senate’s new financial regulations plan revealed today added to the risk aversion in the US trading session.
During the last four trading days, the AUD/USD tried and failed to reach the 0.92 level twice, coming back down to 0.91. Any new lows in the commodities can trigger a sell-off, as the 0.91 level is an important support on hourly charts.
Considering the low trading volume, I would expect the AUD/USD to remain in the 0.91 to 0.92 range till at least tomorrow’s FOMC meeting. Any hawkish comments by the Fed about an interest rate increase can cause the pair to fall from its range pretty hard, as a higher dollar would mean lower commodities, which in its turn would lead to further weakening of the AUD.
