Investing.com - " The Australian dollar traded lower against the
U.S. dollar during Tuesday's Asian session after Reserve Bank of
Australia Governor Glenn Stevens said he believes the Aussie will
weaken in the future.
In Asian trading Tuesday, AUD/USD fell 0.29% to 0.9546, near a
two-week low. The pair was likely to find support at 0.9528, the
low of October 17 and resistance at 0.9671, the high of October 24.
Stevens said the Aussie could be "materially lower" in the future.
Despite Tuesday's loss, the Aussie is still the best-performing
developed market currency against the greenback this month.
"The foreign-exchange market is perhaps another area in which
investors should take care. It seems quite likely that at some
point in the future the Australian dollar will be materially lower
than it is today," Stevens said in a speech in Sydney today.
Stevens also said he expects the Federal Reserve will taper its
easing program at some point, thereby strengthening the greenback.
While Stevens tried to talk to Aussie lower Tuesday, RBA has been
active on that front through a series of rate cuts over the past
two years. However, the Aussie is seen as about 10% overvalued
relative to it historical averages.
RBA is desperate to engineer growth from non-mining sectors of the
Australian economy, the world's 12th-largest, but that growth has
yet t materialize. Even with that, most traders do not believe RBA
will cut rates again in the coming months.
Elsewhere, AUD/JPY fell 0.36% to 93.19 while AUD/NZD lost 0.17% to
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new Investing.com
Stocks & Finance App