by Chris Becker
The Australian dollar was hanging on against the USD this morning, despite the latter’s strength post-Friday’s stronger than expected NFP print which has dashed expectations of accelerated interest rate cuts by the Fed. Although ironically, that’s probably what’s on the way as the US economy splutters into recession.
But the latest NAB Business Survey has seen a fall in confidence from 7 to 2 points, while conditions – helped by the latest RBA cut – has increased to 3 from 1.
The Aussie fell on the news and is still going down with the four hourly chart showing a weak falling wedge pattern with a point of control at the 69.70 level where recent session lows have gravitated until now. This keeps it just above the previous intraweek low at 69.50 proper which must hold for confidence in longs to be maintained:
In other pairs, the Aussie is doing well against Yen, with a potential breakout above 76 in the works:
Against the old foe Kiwi however, the daily chart shows the downtrend channel remaining intact despite the recent small rally off the 1.04 bottom, now rolling over back through the 1.05 handle:
And in Euro, the beleaguered union currency maybe making somewhat off a comeback on this cross as a series of higher lows is pushing it through the 1.61 level:
Holders of gold in AUD however haven’t suffered as much as their USD counterparts although the shiny metal has recently dropped below $1200AUD per ounce, this maybe part of an overall correction back to the dominant uptrend that could fall as far as $1940 or so:
