AUD/USD is holding above 0.8000 in early N.Y. trade after falling in sympathy with EUR/USD. The move lower is a combination of broad dollar strength and a general rise in risk aversion, with equity markets under pressure. The shift in the dollar and equities also added weight on the commodity market, with spot gold and oil both coming under pressure and a potentially negative development for Aussie. Today's local press said that the RBA may be forced to cut rates against in order to provide relief to banks on the funding front, with retail deposit rates well above bank bill rates. AUD/USD could test the 0.7935-50 area amid a weak technical picture, while AUD/JPY sales out of Tokyo are also added to the heavier tone, with the cross trading in to 78.40 from an Asian high of 79.70.
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