The aussie and the greenback have spent the last twenty-four hours trading in a relatively shallow range.
After testing the .9140 mark several times and failing to break much higher, it seems the bulls have exhausted a bit. In addition to the technical pressure pushing down on this pair, the economic data out of Australia was not great either. Building Approvals, which were expected to grow, actually declined again this time by 3.3%. This bearish news was released in tandem with Australian Retail Sales figures that missed expectations by only showing 0.2% growth. With these and several other indicators recently showing that tightening policies are having a definite impact, forecasters were correct in predicting that the Reserve Bank would leave interest rates unchanged at 4.50%. Even after the profit taking the aussie has held rather firm, and after every single US economic indicator reported worse than expected today, it would be very difficult to imagine how the USD could mount any type of serious comeback.