AUD/USD extended losses and dropped below the 0.7800 level for first time since July 2009 as the Aussie continues to weaken amid speculations of a RBA rate cut next week.
AUD/USD lost about 100 pips throughout the day and hit a low of 0.7786, last seen Jul 13 2009. At time of writing, the pair is trading at 0.7790, recording a 1.23% loss on the day.
The Australian dollar remains vulnerable near lows as investors continue to price in a potential rate cut by the RBA when it meets on Feb 3, joining that way the BoC and the RBNZ on the dovish side.
AUD/USD levels to watch
As for technical levels, next supports are seen at 0.7700 (psychological level/Jul 13 2009 low) and 0.7667 (May 21 2009 low). On the flip side, bounces should find resistance at 0.7857 (Jan 26 low) followed by the 0.7900/06 area (psychological level/Jan 29 high).
AUD/USD lost about 100 pips throughout the day and hit a low of 0.7786, last seen Jul 13 2009. At time of writing, the pair is trading at 0.7790, recording a 1.23% loss on the day.
The Australian dollar remains vulnerable near lows as investors continue to price in a potential rate cut by the RBA when it meets on Feb 3, joining that way the BoC and the RBNZ on the dovish side.
AUD/USD levels to watch
As for technical levels, next supports are seen at 0.7700 (psychological level/Jul 13 2009 low) and 0.7667 (May 21 2009 low). On the flip side, bounces should find resistance at 0.7857 (Jan 26 low) followed by the 0.7900/06 area (psychological level/Jan 29 high).
