FX News – August 28: AUD/USD Sinks, USD/JPY Stays Low & EUR/USD Recovers

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The AUD/USD pair sunk below the 0.8960 early in today's trading as the Australian Bureau of Statistics reported disappointing data on construction work done in the country during Q2. From the previous -1.9% (revised from -2.0%), it sunk further to -0.3%, instead of rising to 1.6% as originally expected.

Meanwhile, the Wall Street Journal published yesterday its interview with RBA board member John Edwards. According to him, the aussie still remains "too high" and described the situation as "a brake on economic growth". The interview added that Mr Edwards sees the aussie's value falling further in the coming months. These statements so far have been in line with the RBA's recent announcements regarding the value of the aussie.

The AUD/USD pair is currently trading at 0.8962, with initial resistance seen at 0.9013, followed by 0.9036. Meanwhile, initial support is at 0.8906, followed by 0.8884.

While the USD/JPY pair remains considerably lower than the previous days, it has so far made a slight recovery at the opening of today's Asian session. The yen in particular continues to be affected by rising tensions in Syria, causing the Nikkei 225 to trade down by 2.25%.

The pair is currently trading at 97.12, with initial resistance seen at 97.79, followed by 98.04. Meanwhile, initial support is at 96.23, followed by 95.99.

After a sharp drop during yesterday's European session, the EUR/USD has made a quick recovery and is back at the 1.3390 zone.

The pair made a significant drop yesterday, falling to a low of 1.3331 before picking itself up and rising to just above 1.3385 at the opening of the US session. It opened lower during today's Asian trading, but has since recovered and is currently trading at 1.3392.

Initial resistance for the EUR/USD pair is at 1.3436, followed by 1.3469. Meanwhile, initial support is at 1.3358, followed by 1.3324.

By FX Strategy Team, Published on 28th of August 2013
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