Glenn Steven's speech has had a negative impact on the Australian Dollar. The Governor of the RBA underlined the possibility of seeing the Aussie devalue against the US Dollar in the near future. This statement exerted pressure in the New Zealand Dollar as well as on the Australian Dollar itself.
On top of that, he stated that the Aussie will weaken against its US counterpart in case the Fed starts tapering QE3, which resulted in the Australian Dollar devaluing against 16 currencies.
At the same time, AUDUSD went 2% down to last the levels seen 4 weeks ago. MSCI Asian Pacific, a major stock index, was another loser as the result of Stevens’ speech. Stevens also warned investors that it is necessary to focus on the currency market.
According to Masterforex-V Academy, the Australian Dollar keeps weakening against the US Dollar. The experts report that AUDUSD is forming wave А/B of level H12.
A further downswing below 0.9457 will start wave 5 or the Hound of the Baskervilles pattern of Elder/MF. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 0.9621 (as shown below).
