The Aussie dollar is prolonging the weekly downside on Wednesday, falling from the boundaries of the parity level on Monday to the current region of 0.9870/75, levels last seen in mid June 2012.
After yesterday’s figures of the Federal Budget in Australia, Analyst Adrian Foster at Rabobank, commented, “Australia’s government debt levels are not big news as they are quite low. Interest in this budget is due to its political ramifications with the election looming… In my opinion, it’s hard to see anything here that will turn the government’s fortunes around”.
AUD/USD is now losing 0.15% at 0.9873 facing the immediate support at 0.9850 (low Jun.12 2012) followed by 0.9827 (76.4% of 0.9581-1.0625) and finally 0.9820 (low Jun.8 2012).
On the flip side, a breakout of 0.9940 (low May 13) would open the door to 1.0004 (high May 14) and then 1.0015 (high May 15). – FXstreet.com (Barcelona)