Aussie Dollar Failing and Breaking Through Key Support
Tim Seymour: The Aussie Dollar (NYSEARCA:FXA) failing at the 20 day moving average and breaking through the 50 day moving average support, now off almost 50bps after Monday’s caning.
With copper LME price breakdown and fresh reports out of China that the country has cut its 2012 average copper price target due to reduced need for restocking, it’s no surprise that commodity currencies are struggling.
Why are AUD and CAD even putting up a fight here?
Policy will have to become more dovish in Australia which was the only saving grace for the Aussie dollar.
Canada has no choice with a growing consumer debt problem and the obvious resource linkage of its economy.