Forex - AUD/USD slides as volatility rises
Published Aug 26, 2013 09:40PM ET
In Asian trading Tuesday, AUD/USD slid 0.50% to 0.8983 after earlier trading as low as 0.8969. The pair was likely to find support at 0.8932, the low of August 22 and resistance at 0.9233, the high of August 19.
The Aussie was not helped by some weak U.S. economic data released Monday. In recent weeks, slack U.S. data has stirred speculation the Federal Reserve will have to back-off of its plans to taper its monetary easing program.
Easing has previously lifted riskier currencies such as the Aussie, but the currency was under siege against the greenback Tuesday due to a noticeable decline in risk appetite.
In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June. Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.
One-month volatility for the Aussie has risen 35 basis points this month to 12.64 percent Monday, set for the highest close since July 16, according to Bloomberg.
An obvious reason for the increased volatility in the Aussie is plunging emerging markets currencies. Few developing world currencies have escaped the tapering-fueled carnage
Making matters worse for the Aussie is that it fell below the psychologically important 0.9000 area where plenty of traders had set stop-loss orders.
Elsewhere, AUD/JPY slid 0.77% to 88.24 while AUD/NZD fell 0.08% to 1.1487.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.