AUD has extended its losses Wednesday, weighed by lower Asian bourses and comments from Treasurer Wayne Swan in his post-budget address where he reiterated that the budget would give flexibility to the RBA to ease monetary policy further. AUD opened the Asian session around $1.0096 before a modest rally to $1.0116 was met with selling pressure as risk-off sentiment began to take it’s toll on prices. The rate slipped lower to around $1.0066 with traders noting sellers coming out of Tokyo and real money accounts also succumbing to the downwards move. Momentum funds have also been touted to be a large contributor to the selling and have thought to have been present in the market so far this morning. Stops are thought to be around the $1.0040 area, with some reasonable demand seen on the approach to $1.0050. Additional demand is seen at parity, $1.0000, with stops placed around $0.9980 – $0.9992 should prices convincingly break $1.0000.
EasyForexNews Research Team