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Thomson Reuters
Aug 29 - 02:36 PM
AUD/USD - COMMENT-AUD/USD Hobbled By Mortgages And EM
First appeared on eFXplus on Aug 29 - 11:35 AM

AUD/USD's short-lived recovery appears to be in jeopardy after failing to seriously test resistance near the 55-DMA and daily cloud base.
The aussie is trading heavily across the board today after Westpac lifted mortgage rates by 14 basis points, raising the prospect that other big Australian banks might soon follow suit.
The potential hit to disposable income from mortgage rate hikes could forestall RBA tightening, explaining the drag on the aussie.
Emerging market concerns have also added to the weight on AUD/USD.
Weakness in APAC currencies have combined with sell-offs in the Turkish lira and Argentina's peso to give the emerging market complex a bearish tilt.
As the aussie remains a proxy for EM currencies, the reverberations are seen in AUD/USD's slide today.
The pair has fallen back below the 10- and 21-DMAs and RSIs are biased down again.
The pair looks set to test support near 0.7240 and 0.7200.

chart: Click here

Source:
Thomson Reuters IFR Markets

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