27 Sep 2013
AUD/USD falls to 10-day low, SA downgrade weighs
FXstreet.com (Córdoba) - The AUD/USD extended losses into a fourth day and slid toward a 10-day low Friday, weighed by Fitch downgrade of the State of South Australia ratings to 'AA' from 'AA+'.
Fitch downgrades South Australian
"The downgrade reflects Fitch's view that although SA is beginning to take measures to rebuild its financial position, the state's fiscal and debt positions have deteriorated over the past five years, and Fitch does not expect significant recovery for at least three more years," Fitch said in a statement.
The Australian dollar was hit by the rating cut and dropped over 50 pips toward 0.9307 before finding support just ahead of the 100-day SMA which lies at the 0.9300 level. At time of writing, AUD/USD is trading around 0.9310, 0.6% below its opening price.
AUD/USD technical levels
As for technical levels, immediate support for the AUD/USD stands at 0.9300 (psychological level/100-day SMA) followed by 0.9285 (Sep 17 low) and 0.9222 (Sep 13 low). On the flip side, 0.9343 (Sep 22 low), 0.9375 (Asia high) and 0.9400 (psychological level) are resistance levels.
Fitch downgrades South Australian
"The downgrade reflects Fitch's view that although SA is beginning to take measures to rebuild its financial position, the state's fiscal and debt positions have deteriorated over the past five years, and Fitch does not expect significant recovery for at least three more years," Fitch said in a statement.
The Australian dollar was hit by the rating cut and dropped over 50 pips toward 0.9307 before finding support just ahead of the 100-day SMA which lies at the 0.9300 level. At time of writing, AUD/USD is trading around 0.9310, 0.6% below its opening price.
AUD/USD technical levels
As for technical levels, immediate support for the AUD/USD stands at 0.9300 (psychological level/100-day SMA) followed by 0.9285 (Sep 17 low) and 0.9222 (Sep 13 low). On the flip side, 0.9343 (Sep 22 low), 0.9375 (Asia high) and 0.9400 (psychological level) are resistance levels.