The australian dollar fell sharply against the dollar by 50 points from 0.7250 to 0.7225 following the steep decline of the Shanghai Composite Index which fell 0.60% at the open and shed further losses to 2.50% in the Asian morning session. The Chinese stock market however, made a mild recovery later in the day, where the aussie dollar was pushed higher as well on a short covering rebound to 0.7257 in Europe.
Trading has however, shown only a 32 pip range from the prior Asian session to the European morning hours ahead of tomorrow's Australian 3rd quarter CPI, but more importantly the FOMC results tomorrow. The Fed strives for a clear signal on the direction of the interest rates.
Australia's consumer confidence sags as mortgage rates rise, increases in variable loans are likely to lead to the RBA to cut their key interest rates - Wall Street Journal.
Support seen at 0.7205 Oct 26 low. the 14-day moving average support lies at 0.7232 and resistance at 0.7250. Some corporate demand at 0.7200 and stops at 0.7195 and key support at 0.7160.
Chart: WorldWideMarkets Alpha Trader