The Australian Dollar is weakening under the pressure of external news and the possibility that the RBA may act in the open market.
According to Emma Lawson, a currency strategist for the NAB, say that the situation in the Middle East is pressing the Aussie. The threat of a fiscal collapse and a major recession in the USA keeps affecting Australia’s national currency as well.
However, investors are even more concerned about the fact that the RBA’s currency reserve have increased by AUD457 million. Therefore, they look worried that the RBA may be implementing some hidden currency interventions.
According to , the Australian Dollar keeps weakening against the US Dollar, which may grow into a major downtrend. The expert report that the recent upswing represented by А/В of level Daily is completed.
A break below 1.0148 will start a major downswing. If this is the case, the price may touch 1.0101. The current bearish move will be completed as soon as the price consolidates above 1.0479 (as shown below). In this case, 1.0623 will become the closest level of resistance.
