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15 Dec 2014
AUD/USD hits a fresh 4-year low
FXStreet (Mumbai) - The Aussie resumes its decline against the US dollar, hitting a new four-year low at 0.8205 in early Asian morning.
The AUD/USD pair trades now at 0.8222 levels, down -0.30% on the day, slightly recovered from fresh lows. The AUD/USD pair trades lower after Australia’s updated budget estimates release pointed towards ballooning budget deficit accompanied with worsening labour market conditions.
The government's Mid-Year Economic and Fiscal Outlook (MYEFO) saw the forecast budget deficit for the 2014/15 fiscal year expanded to AUD 40.4 billion from AUD 29.8 billion as forecast in May. The new forecasts saw GDP estimates unchanged at 2.5% in the current fiscal year and inflation forecasts slightly higher than in May, at 2.5% versus 2.25% previously.
Treasury forecast unemployment to reach 6.5% by the second quarter of 2014 compared with 6.25% forecast in May. Currently the unemployment rate in Australia is 6.3%, according to data last week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8233(10-day SMA) levels, above which gains could be extended to 0.8267 (50-day SMA) levels. On the flip side, support is seen at 0.8215 (5-day SMA), from here it to 0.82 levels.
The AUD/USD pair trades now at 0.8222 levels, down -0.30% on the day, slightly recovered from fresh lows. The AUD/USD pair trades lower after Australia’s updated budget estimates release pointed towards ballooning budget deficit accompanied with worsening labour market conditions.
The government's Mid-Year Economic and Fiscal Outlook (MYEFO) saw the forecast budget deficit for the 2014/15 fiscal year expanded to AUD 40.4 billion from AUD 29.8 billion as forecast in May. The new forecasts saw GDP estimates unchanged at 2.5% in the current fiscal year and inflation forecasts slightly higher than in May, at 2.5% versus 2.25% previously.
Treasury forecast unemployment to reach 6.5% by the second quarter of 2014 compared with 6.25% forecast in May. Currently the unemployment rate in Australia is 6.3%, according to data last week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8233(10-day SMA) levels, above which gains could be extended to 0.8267 (50-day SMA) levels. On the flip side, support is seen at 0.8215 (5-day SMA), from here it to 0.82 levels.