The US dollar came under huge pressure last night, getting slammed late in our afternoon as European traders sat down and seemed to decide that the resolution to the impasse was a good thing.
It also showed a fractured political system and an economy that has had its recovery derailed, so they sold US dollar and bought euros, pounds and in particular, Aussie dollars.
The 5-minute chart above from my Vantage FX trading platform shows that the Aussie dollar has moved more than 1 cent in overnight trade.
While short-term technical indicators suggest it might pull back a little, the next chart of the weekly AUD price action will be causing some angst at the RBA, Australian Treasury, our Treasurer’s office and for many exporters.
Sure the Aussie is in a big down trend and certainly the Aussie is now 8 cents off the low of a couple of months back but the technicians suggest that 97-98 cents is achieveable and that it may even hit 99 cents in the month ahead.
Joe Hockey might just have a serve of indigestion with his breakfast this morning.
Follow Greg McKenna on Twitter.
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