The pound Australian dollar exchange rate is 0.233% lower on the day with 1 GBP = 1.5272 AUD at 10 AM in London. The euro Australian dollar exchange rate is 0.256% higher with 1 EUR = 1.3352 AUD. The Australian dollar to US dollar exchange rate is 0.321% lower with 1 AUD = 1.0243 USD. In recent sessions the AUD managed to find some stability after being sold down heavily throughout yesterday’s Asian session on the back of S&P's downgrade of Italy's short- and long-term credit ratings. "The S&P downgrade and the potential contagion effects on the already high European yields saw investors retreating from risk currencies such as the Australian dollar, which fell to a low of 1.0149 shortly after the downgrade was announced," says Chris Weston at IG Markets. Having closed yesterday’s Australian equities session around the 1.0190 mark, the Australian dollar surged along with overnight equity markets to a high of 1.0313. This occurred before it pared gains to close at 1.0276, on news of no definitive recommendation from the Troika that Greece’s bailout package would be reached until October. The late negative momentum in the AUD initially spilled over into early Asian trade, with the AUD drifting into the 1.0250 range, but it has since recovered to currently sit around the 1.0270 level. According to the UBS technical team, the pair remains under pressure for now. Initial support lies at 1.0126, the 76.4% retracement of the recovery from 0.9929 to 1.0764. A break here would expose the August 9 low of 0.9929. Key near-term resistance is at 1.0397.

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