We have updated our privacy policy and terms & conditions. Find out more here.

Forex - AUD/USD slides as volatility rises

ForexAug 27, 2013 01:40AM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - The Australian dollar traded lower against its U.S. counterpart Tuesday in Asia as volatility is seen seeping into the Aussie.

In Asian trading Tuesday, AUD/USD slid 0.50% to 0.8983 after earlier trading as low as 0.8969. The pair was likely to find support at 0.8932, the low of August 22 and resistance at 0.9233, the high of August 19.

The Aussie was not helped by some weak U.S. economic data released Monday. In recent weeks, slack U.S. data has stirred speculation the Federal Reserve will have to back-off of its plans to taper its monetary easing program.

Easing has previously lifted riskier currencies such as the Aussie, but the currency was under siege against the greenback Tuesday due to a noticeable decline in risk appetite.

In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June. Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.

One-month volatility for the Aussie has risen 35 basis points this month to 12.64 percent Monday, set for the highest close since July 16, according to Bloomberg.

An obvious reason for the increased volatility in the Aussie is plunging emerging markets currencies. Few developing world currencies have escaped the tapering-fueled carnage

Making matters worse for the Aussie is that it fell below the psychologically important 0.9000 area where plenty of traders had set stop-loss orders.

Elsewhere, AUD/JPY slid 0.77% to 88.24 while AUD/NZD fell 0.08% to 1.1487.

Forex - AUD/USD slides as volatility rises

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.