AUD slips to 4-month lows
There was little in the way of catalysts to inspire any sort of meaningful correction from the Aussie dollar overnight. Equity losses and residual greenback support from Wednesday's FOMC meeting kept the balance of risk away from high beta currencies with the Kiwi leading the charge lower. Still, we saw key support kick in around 102.2 US cents which thwarted what could have been a deeper trough to the next level of technical demand at 101.5 US cents.
The next key directive for the Aussie dollar will be RBA Governor Glenn Steven's appearance before the House of Representatives Standing Committee today from 9.30am. While markets may be well-informed given the recent release of the RBA minutes and SoMP, trader will attempt to decipher the overall tone of his testimony, for which we can expect the usual banter surrounding currency strength to remain a key topic. Once again we're eyeing key support at 102.2 to keep contain any selling with a move below likely to fuel further losses. In the absence of any positive surprises from Governor Stevens, we likely to see upside contained at 102.65/75 US cents.
At the time of writing the Australian dollar is buying 102.45 US cents.