The AUD/JPY is trading at 76.24, ranging from 76.20 and 81.23. In the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
The traders are watching the resistances at 80.00 (key), 82.85 (October 3rd high) and 85.16 (October 1st high). The supports, on the other hand, are watched at 73.88 (September 2nd 2003 low), 71.48 (April 8th 2003 low) and 68.74 (January 16th 2003 low).
Tonight, the RBA will announce its interest rate. The markets are expecting a 50bp cut, from 7% to 6.5%.
Given the expansion of the financial crisis in Europe and the declines in the equity markets, the investores are massively seeking the Japanese currency, that is advancing, today, 7% against the Aussie.
In this context, the commodities market is suffering a strong correction, as it's predicted that the demand for these will decline due to the credit restrictions. This way, the Australian currency faces more pression, as Australia is a commodities exporter.
Checking the hourly graphics again, the current price is under the 38.20% (80.98) and over the 38.20% (71.23) Fibonacci retracement lines. The volatility per hour is 700 pips and the 60-minute Relative Strenght Index (RSI) is at 20 points, very oversold.
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