The Aussie dollar is holding in extremely well after the ECB announced its massive QE program overnight and the US dollar strengthened.
While the Euro has fallen 1.96% to 1.1381 and the Pound has been dragged 0.82% lower to 1.5017, the Aussie dollar has only lost 0.41% against the US dollar and sits at 0.8050.
But that’s less than 20 points above the low of this year at 0.8030 which is also the lowest level since 2009.
Yesterday the ANZ said that the Aussie dollar was spending its last days above 80 cents.
But the NAB this morning said that:
“As the country gears up for its official national day on January 26th, we’d expect the current low of this cycle in AUD/USD (0.8033) to hold today, though it may well be tested as the ‘Big Dollar’ remains well-bid.”
Well-bid indeed. Traders know the pressure is on and they’ll be watching the 0.8000/30 level closely in trade today.