The Australian dollar outperformed against its currency counterparts on Thursday as the economic docket reinforced an improved outlook for the region,while the Euro slipped to a low of 1.3165 as fears surrounding the European debt crisis continued to weigh on market sentiment.
Daily Winners and Losers
Currency | Last | High | Low | Daily Change (pip) | Daily Range (pip) |
AUDUSD | 0.9833 | 0.9885 | 0.9776 | 38 | 109 |
The Australian dollar outperformed against its currency counterparts on Thursday as the economic docket reinforced an improved outlook for the region,but the rebound in the exchange rate is likely to be short-lived as the Reserve Bank of Australia maintains a cautious outlook for the $1T economy. The AUD/USD remains nearly 40pips higher on the day after falling back from a high of 0.9885,and the pair may continue to retrace the overnight advance as market sentiment falters. As price action struggles to hold above the 120 moving average at 0.9846,the bearish divergence in the relative strength index reinforces a bearish outlook for the aussie-dollar,and the exchange rate may fall back towards the 10-Day SMA at 0.9757 to test for short-term support. As the head-and-shoulders top remains intact,the reversal in the exchange rate should gather pace going into the end of the year as interest rate expectations deteriorate.
