Australian dollar rejected above .77 cents again

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The Australian dollar got rejected above the .77 cents level again and is now back trading around .7672 this morning.

“For almost a year now, the Aussie dollar’s forays above the 77 cents have been rebutted,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.

“It seems like the Aussie dollar bulls can’t break through this wall. But, for the moment while 77 cents is a bridge too far, a weak US dollar is keeping the Aussie a bit steady,”

“The .77 cents level remains a graveyard for the Aussie dollar bulls,” McKenna said.

The Aussie dollar rallied yesterday morning on the back of the US Fed’s decision to lift interest rates. But the weak domestic jobs data saw the Aussie pulling back.

“The disappointing jobs data didn’t give any comfort to the Aussie dollar bulls,” McKenna said.

In the meantime, it’s been a rollercoaster ride for the British Pound over the past 48 hours.

“Fundamentally the pound was buffeted by Prime Minister Theresa May’s gaining parliament’s approval to seek Royal Assent on the bill that allows her to trigger Article 50 which begins the withdrawal process by the UK from the European Union,” said McKenna.

According to McKenna, an additional surprise came when the minutes of yesterday’s BoE meeting revealed that: “some members noted that it would take relatively little further upside news on the prospects for activity or inflation for them to consider that a more immediate reduction in policy support might be warranted”.

Rates in the UK rose and the pound found a bid as a result.

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“At the moment, the Pound is the biggest winner after the BOE meeting,” McKenna said.

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