The pair started this morning at $0.8835 and marked small gains to $0.8854 in very early pre-Asian dealings. The pair reversed direction after that and spent most of the rest of the morning heading south. The pair traded to $0.8822 and then extended the low to $0.8817 a few minutes after the release of Q3 PPI and the RBA’s private sector credit data. Dealers said a weakening aussie-yen, in line with other yen crosses also weighed on the aussie. Aussie-dollar witnessed a small recovery to $0.8830 around mid-morning but found little momentum for a continued recovery. Japanese and other offshore accounts continued to chip away at the aussie through the late morning, keeping the rate pinned back near $0.8820. It was last at $0.8827 with immediate resistance noted ahead from $0.8875 while support is expected down near last night’s $0.8756 US session low. Stops are noted above $0.8857 from traders who sold the break lower and also from traders initiating shorts in early Asian trading.
