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Aussie below 0.70 handle

Friday, Sep 04 2015
There were no data releases from Australia this morning.The Aussie continued to weaken after lackluster data and pressures from China. The Australian dollar fell below the 70c level against is US counterpart this morning. Persistent concerns surrounding China’s economy, the potential for higher interest rates in the US, a weak Q2 GDP print and decline in retail sales all acted in unison to push the Aussie into the 60s.
 
While many analysts are clambering over each other to predict further significant declines in the Aussie – 68 cents, 67 cents, 65 cents and even 60 cents have been bandied about in recent days – not everyone is so pessimistic. Sean Callow, Westpac’s senior currency strategist, certainly fits that view. In a note released overnight, he suggests that “there are reasons to expect AUD/USD will continue to spend plenty of time in the 0.70s”.
 
While Callow admits that there was “plenty of bad news” in Australia’s Q2 GDP report, he suggests that “the RBA is unlikely to have been too surprised by the data, and has indicated it is willing to be patient with growth this year”. Volumes are light with many traders sitting on the sidelines before the US non-farm payrolls report for August.
 
Aussie is currently being traded around 0.6970 level. Pair is likely to find support around 0.6930 level and resistance above 0.7050 area. Later today, in the US session, NFP figures are scheduled for a release.
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