Forex: AUD/USD down to 0.9247 as risk aversion returns

The Aussie lost ground to the dollar as risk aversion returned. The pair is currently trading at 0.9247. Earlier, the pair posted an intraday high of 0.9268 and finds support at 0.9223 and resistance at 0.9285. Outlook for the pair is slightly bullish at present.

While the USD firmed against most currencies, commodity prices fell, especially energy stocks. Markets had grown wary of larger than expected stockpiles of crude in the US.

Meanwhile, as reported in Business Spectator, Michael Metcalfe, head of State Street Global Markets maintains the AUD is overvalued and may experience further correction. “I think it’s fair to say that by most measures the Australian dollar is overvalued, perhaps as much as 10% against the US dollar or even on a trade weighted basis.”