The Australian dollar has bounced back from heavy selling pressure overnight and is now trading above the .79 cents mark.
“Both the Aussie and Kiwi dollar came under heavy selling pressure in early London trade yesterday and were knocked down sharply lower,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.
But the Aussie managed to bounce back to 79 cents while the Kiwi did not recover and languishes near 72 cents, McKenna pointed out.
Commodity bloc currencies playing different tunes
He added that “Among the commodity currencies the music is playing but traders are hearing a different song for each pair,”
“The Kiwi is about 0.3% lower, the Canadian dollar about 0.25% higher and the Aussie is largely unchanged,” McKenna said.
At the moment, the Aussie continues to get support from strong metals and iron ore prices. At the same time, the outlook for the global economy remains firm and these are all supportive of the Aussie according to McKenna.
IN the meantime the key short term levels for the Aussie are 0.7860 and 0.7915. A break of either would then open up a move to 0.7800/10 and 0.7950.
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