(MENAFN– ecpulse)
The Australian dollar fell against its American counterpart and other major currencies, after the released growth data that came below forecasts.
The released data raised more concerns about the Australian economy, which is currently moving below expectations, pressuring the government and the central bank to continue with the stimulus measures that helps to revive the economy in the coming period.
On the other side, the Reserve Bank of Australia decided Tuesday to keep interest rates at its record low of 2.5 percent, and it is expected that the rate will not be changed in 2014, although the bank said there is a room for more interest rate cuts.
The RBA`s statement and the released growth data weighed on the Australian dollar that recorded a low of 0.9065 against the dollar, after it started today`s session at 0.9130.
The 0.9060 proved that it represents a great support level for the Australian currency, so it may force the AUD to swing above it before breaking the support and continue with its downside trend.
As for the dollar yen pair, it declined in early trades, after it traded near the short term target of 103.70, while today the pair recorded a low of 102.24. USD/JPY is expected to continue with trading between 103.70 levels and 101.50 levels over the short term, till the pair gains enough momentum to breach these levels.
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