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Aussie traded in a tighter range

Wednesday, Oct 21 2015
There were no major data releases from Australia this morning. The Aussie dollar gained on Tuesday, though it pulled back by the end of the session, after the released minutes of the Reserve Bank of Australia's October board meeting indicated at the time that there wasn't an immediate risk of additional easing while being comfortable with the current exchange rate.
 
Increased commodity supply coupled with slower global growth, particularly from the world’s largest commodity consumer, China, may keep commodity prices under pressure which, in turn, could place pressure on Australia’s current account deficit, already running at an above 4.7% of GDP.
 
The economic slowdown in China, along with the prospect of higher interest rates in the US, may see Asian currencies come under renewed pressure, something that as the chart below shows could spell trouble for the Aussie given its historic relationship to Asian currencies, excluding the Japanese yen and the fact that many see it as merely a proxy for economic activity across the broader Asian region.
 
Aussie is currently being trade around 0.7270 area. Pair is likely to find support around 0.7230 level and resistance above 0.73 area. There will be no major data releases later in the session.
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