(May 12 Thursday) The australian dollar continued its decline from the intraday high of 0.7402 in NY yesterday which fell in Asia and in Europe to test the low of 0.7311 (-91 pips) against the U.S. dollar and all of its major peers. There are talks once again of another interest rate cut by the Reserve Bank of Australia within the next 4-6 months after the RBA unexpectedly cut their rate to 1.75% last May 3rd.
The dip to the low of 0.7311 proved to be quick and that particular level was met with much buying interest by speculators and corporate demand. This would be suggestive of limited decline of the australian dollar, with bid orders at the bottom at least for the remainder of the week, until we see the results of the upcoming China Industrial Production this Saturday. The 14-day moving average support 0.7328 and resistance at 0.7390. The 30 DMA resistance is 0.7385. Copper and the commodities market gains also gave support to the aussie today.