Australia’s dollar will reverse its biggest monthly gain since September, trading patterns suggest, as decade-high unemployment and a slump in business investment spur speculation interest rates will decline.
The Aussie climbed 2.4 percent this month, the largest advance among 10 major peers after the currencies of Norway and New Zealand. A close below the key level of 89.20 U.S. cents, the 38.2 percent Fibonacci retracement of the currency’s gain from a 3 1/2-year low, would signal further declines, IG Ltd. said. The moving average convergence-divergence, or MACD, turned bearish this week after falling below a so-called signal line for the first time in almost a month.
