Forex: AUD/USD tumbles to session lows at 0.9900

FXstreet.com (Barcelona) - The AUD/USD has collapsed today, following the fate of its antipodean counterpart Tuesday. During US trading, the cross recently bottomed out at the 0.9896 level (intraday low), and is currently testing this region in these moments. At this juncture, the pair is suffering a loss of -0.45%.

Following a plunge below the 0.9946 support, Mataf.net analysts point to supportive means for the AUD/USD at 0.9906, ahead of 0.9875. Conversely, a break above the 1.0017 handle will initiate resistance at 1.0049 and 1.0088.

In the United States, The Import Price Index (YoY and MoM) fell -2.6% in April (compared with a figure of -2.7% previously) and -0.5% in April (matching expectations of -0.5%) respectively. Conversely, the Export Price Index (MoM) contracted -0.7% in April, vs. a projection calling for -0.2%.

Stronger local data calls into question when the RBA will cut again, helping limit AUD/USD downside. However, “the cleanout could easily extend to 0.9850/70 near term before bouncing back above 1.00 on stretched short positioning.” notes Global FX Strategist Sean Callow at Westpac.