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Forex: AUD/USD drops to 1.0250 area after capping at 1.0308 high

FXstreet.com (Barcelona) - The AUD/USD rose to 1.0300 ground during the Asian session for a test of resistance, printing a high at 1.0308 before progressively, now at 1.0250 area as the European session unfolds. The Aussie may get pressured by this weekend’s reports that the Australian government may have taken a AUD7.5 billion revenue hit since October and that the budget deficit may come as high as AUD20 billion.

“A respected think-tank (Grattan Institute) claims that the fiscal situation is in such bad shape, expect a 'decade of deficits'. Both the current Labor government and opposition coalition admit fiscal surpluses are a long way down the track with revenues taking a hit from lower commodity prices. The budget is brought down May 14, but we believe deficits are unlikely to impact the AAA/stable rating as deficit and debt metrics remain a fraction of those in Europe and the US”, wrote TD Securities analyst Annette Beacher.

While capped here (1.0398/1.0440), the market will remain directly offered. We should see a slide to 1.0204/16, the 11th March low and 78.6% retracement en route to the 1.0116 recent low”, wrote Commerzbank analyst Karen Jones.

Forex: NZD/USD trading positively above 0.8400

The NZD/USD has recovered the 0.8400 level despite a brief stumble below this handle (0.8395 intraday low) Monday. As of European trading, the pair is now firmly entrenched in positive territory, settling at 0.8421/23 during a quiet morning – the cross is currently recording a +0.22% advance above it’s opening.
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Forex: GBP/USD drives back to 1.5240 high on London opening

As the week started, the GBP/USD printed its daily low at 1.5205, and after an Asian session capped by resistance at 1.5240, the pair returned to its lower band of the range just ahead of the London opening. Once the bell ringed, the market got back to resistance. The UK credit rating was downgraded by Fitch agency from AAA to AA+/stable Friday night.
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