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AUD/USD Fell Below 0.7700, Follows AUD/NZD Decline

Posted by Chris Advincula on Mar 30, 2015 7:15:00 AM

AUDNZD.3.30 resized 600

Chart: WorldWideMarkets Alpha Trader

The Australian Dollar shows a steady decline on the 5-minute chart from Friday's late NY session high of 0.7775 breaking 0.7700 with relative ease and fell further in the both the Asian and early European session to 0.7650. (-125 pips)

The Aussie fell primarily on market talks of another round of interest rate cut from the RBA at next week's meeting on April 7. The firm US dollar also aided in the aussie's decline. 

The third and important factor that contributed to the aussie's decline stems from the weakness of the Australian dollar against the New Zealand dollar. The AUD/NZD rate fell from 1.0263 to 1.0175 (-88 pips). It broke the 1.0220 support with month-end position squaring as well.

The bearish channel formation on the chart shows the decline from 0.7740 to 0.7668 on the topside. Looking into the 14-day moving average, the 0.7692 support is broken easily with very little corrections in sight. A retracement is nonetheless due possibly to 0.7700 before resuming the down trend.

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Chart: WorldWideMarkets Alpha Trader

Topics: AUDUSD, forex trading, European Session, technical analysis, Fundamental Analysis, New Zealand dollar, Australian Dollar

 

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