AUD/USD Analysis

The pair opened at $0.7702 this morning in Asia and was under pressure from the get-go, falling through $0.7670 for $0.7663 soon after Japanese stock markets opened. Although there were several bounces off the initial lows, the aussie was under constant selling pressure on any recovery. The rate saw a very small uptick immediately after the CPI, PPI data from China, reaching $0.7676, from around $0.7668 just before the data were released but this was shortlived. There were some signs of stability after aussie-dollar traded back down to $0.7657 and it held just off that low for a few hours after that. Reports out of New Zealand about a trading halt in dairy products on the NZ stocks exchange following threats to contaminate infant formula drove a sharp move higher in aussie-kiwi, putting a floor under aussie-dollar for a while. The cross rose from NZ$1.0460 to a new fresh high of NZ$1.0522 before it then pulled back a bit to NZ$1.0480 as the market calmed down. Aussie-dollar however failed to gain much support and the pair slid to another afternoon low of $0.7632. It last traded at $0.7647. Next support then comes in at the 2015 low so far of $0.7626, traded on Feb. 3 with demand then noted further down at $0.7600.