AUD remains weak after Monday’s dramatic hostage situation in the Sydney CBD, which is still far from resolved. The currency dropped very quickly from around $0.8250 to a low of $0.8204 as events unfolded. After making a new recent low, and at a point not seen since June 2010, the currency has had a slight bounce into the afternoon. The Mid-year Economic and Fiscal Outlook (MYEFO) was also released after a short delay today and was largely uneventful given the stunning drop in key export commodity prices in the past few months. Ratings agency S&P confirmed that the MYEFO will not risk the AAA rating, saying “these revised budget forecasts remain broadly consistent with our base case assumptions”. Sellers seen at $0.8250/60, then into $0.8300 with stops above, whilst solid stops seen at below $0.8200.
