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Forex - AUD/USD down as Japan reactor explosion hits risk appetite

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Forex Pros - The Australian dollar was down against its U.S. counterpart on Monday, weighed by reports of an explosion at a Japanese nuclear reactor, in the wake of Friday's devastating earthquake and tsunami.

AUD/USD hit 1.0064 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0070, shedding 0.65%.

The pair was likely to find support at 0.9968, Friday's low and a two-week low and resistance at 1.0157, Friday's high.

Earlier in the day, Japan's Ministry of Economy, Trade & Industry said a hydrogen explosion had occurred at reactor three in the nuclear power plant in Fukushima, north of Tokyo, two days after an explosion hit reactor one.

Officials said the reactor core was still intact and that radiation levels were below legal limits.

The Bank of Japan announced earlier that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion.

The Aussie was also sharply lower against the euro, with EUR/AUD climbing 0.70% to hit 1.3811.

Also Monday, Japan's Prime Minister Naoto Kan said the situation at the nuclear plant was alarming, and the earthquake had thrown Japan into "the most severe crisis since World War II".

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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