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AUD/USD breaking key support levels

FXStreet (Guatemala) - AUD/USD is trading at 0.8574, down -1.86% on the day, having posted a daily high at 0.8764 and low at 0.8565.

AUD/USD has fallen through the 0.8600 handle in an extension of the move through the 0.87 level. The greenback was well bid across the board of majors and the Aussie has not been able to recover from such a blow. There has been very little to back up the pair of late and the HSBC Chinese services PMI data were slightly softer too.

AUD/USD downside well exposed

Gold has been much lower weighing on the pair also and the commodities sector in general. The follow through took out the 0.8660 support (24/01/2014 low) area and this leaves the downside well and truly exposed given the RBS’s continued suggestions that the most prudent course is likely to be a period of stability in interest rates, and explaining that the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months. Karen Jones, chief analyst at Commerzbank explained that they continue to target the 0.8550 50% retracement of the move from 2009. “This guards the base of the 3 year channel at 0.8438/0.8391”.

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