The Australian dollar has come under pressure of late on concerns of a sharp slowdown in Chinese growth. The Aussie dollar has also fallen as the Reserve Bank of Australia has turned noticeably dovish. But support for the Aussie against the US dollar is coming in around $1.0230. With the interest rate cut now priced in, some traders expect the Aussie to recover lost ground. GFT quotes $1.0283-$1.0284 for Aussie dollar-dollar.
Sell Aussie dollar-Canadian dollar on the back of central bank divergence. Any recovery to the Ca$1.0200/10 area will be used to sell into. Good support lies at Ca$1.0070 – the 100-week moving average. Forex.com quotes Ca$1.0182-Ca$1.0186.
Expectations of further QE from the Fed remain overstated which has weighed on dollar-yen recently as US bond yields have weakened. Expectations of additional easing by the Bank of Japan should keep a floor under the US dollar and weaken the yen and revisit the highs seen earlier this year. CMC Markets quotes ¥81.209-¥81.219.