AUD/USD looking very heavy, lowest at 0.7862

FXStreet (Bali) - AUD/USD has resumed the bearish momentum in Asia, with the relentless bids off 0.7880 giving in, leading to an extension of losses until 0.7862 lows.

Stuart McPhee, Analyst at Market Pulse, notes: "Sharp falls in oil prices have dragged Australian inflation to near three year lows, but borrowers shouldn’t expect a rate cut from the RBA just yet, economists say. The price of Australian consumer goods and services rose just 0.2 per cent, in the December quarter, for an annual rate of 1.7 per cent, official figures on Wednesday showed."

Technically, Jim Langlands, Founder at FXChart, examines the key downside levels to keep an eye on: "Points to watch on the downside, below 0.7900 are at 0.7880 - broken - and at the trend low at 0.7857, where the base of the descending channel is providing some support. Under 0.7850, would head towards 0.7800 and then to 0.7765 (200 Month MA), the July 2009 low at 0.7700 and beyond, possibly to the RBA’s stated target at 0.7500, albeit not for a while."

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Gold steadies above USD 1280

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