The Australian dollar enjoyed few days of consolidation, but this is over now. AUD/USD is falling under the round level of 0.97 and the next support line is not too far.
The recent fall can easily be attributed to Ben Bernanke’s testimony in Washington.
In his prepared statement, the Chairman of the US Federal Reserve said that it would be premature to stop monetary easing, as it could hurt the recovery. However, in an answer to a question regarding an exit strategy, Bernanke said it could happen in the next few meetings, depending on an improvement in employment of course.
While most of the speech was cautious and far from hawkish, this was enough to spark a dollar rally.
AUD/USD, that was already on the defensive due to a report about lower investment in mining, dropped under 0.97 and quickly deteriorated. It probably triggered stops. The Aussie fell as low as 0.9672 so far. Support appears at 0.9650, which was an important support line in the past.
For more levels, see the AUD/USD forecast.
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