Forex: AUD/USD heading towards 200-day MA; Fitch warns on steel, iron ore outlook
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AUD/USD
FXstreet.com (Barcelona) - The Australian Dollar continues to liquidate further in Asia, currently exchanging hands at 1.0330, fresh weekly lows, and first support to overcome, which aligns with last July 5 high and 55-day MA. More support found at 200-day MA at 1.0312. The ASX200 is also sharply down to 4310 & Nikkei aiming for 9000.
The latest sell-off in the Aussie came partly fueled by a Fitch headline suggesting weakness in steel &iron ore will continue through Q1 2013. According to Sean Callow, currency strategist at Westpac, AUDUSD appears to be heading to test the 200dma support at 1.0312. On the upside 1.0345 up to 1.0355 should act as first supply area to protect sellers on any corrective upleg.
Meanwhile, in a recent report from WSJ editor Enda Curran, it was noted: "Credit default swaps, or CDS, tracking Rio Tinto, the world's second-largest iron ore producer, have risen by 19 basis points in the past three days to 155 basis points, its widest level since late June. In other words, to insure a notional amount of A$10 million, a CDS buyer would pay an annual fee of A$155,000. CDS on its rival, BHP Billiton Ltd, have moved out to 100 basis points, also its widest since June."
The latest sell-off in the Aussie came partly fueled by a Fitch headline suggesting weakness in steel &iron ore will continue through Q1 2013. According to Sean Callow, currency strategist at Westpac, AUDUSD appears to be heading to test the 200dma support at 1.0312. On the upside 1.0345 up to 1.0355 should act as first supply area to protect sellers on any corrective upleg.
Meanwhile, in a recent report from WSJ editor Enda Curran, it was noted: "Credit default swaps, or CDS, tracking Rio Tinto, the world's second-largest iron ore producer, have risen by 19 basis points in the past three days to 155 basis points, its widest level since late June. In other words, to insure a notional amount of A$10 million, a CDS buyer would pay an annual fee of A$155,000. CDS on its rival, BHP Billiton Ltd, have moved out to 100 basis points, also its widest since June."
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