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AUD/USD lost ground during the last three hours, dropped below 0.7100, hitting a fresh daily low at 0.7081. It erased weekly gains. The pair is hovering around 0.7090 holding a bearish intraday tone, affected by a stronger US dollar.
Greenback gained momentum during the American session as stocks in the US moved off session highs and amid a decline in crude oil prices.
AUD/USD failed to hold to gains. On Asian hours, the pair climbed and rose toward 0.7200 after the release of the Reserve Bank of Australia minutes. According to analysts from BBH, the document noted that very low rates are supporting household consumption, while the weaker aussie was boosting demand for domestic production. “However, the RBA said that low inflation may provide scope to ease further if appropriate. he Aussie is bid today, perhaps more from the bounce in global sentiment and firm Chinese data than from domestic considerations.”
AUD/USD technical perspective
At BBH analysts note that the 0.7200 area could be a tough hurdle near-term. The pair lost strength today near that area and reversed sharply.
The decline of the last hours brought the price below important short-term technical support levels. Now the short term outlook favors the US dollar, considering that price is back below key MAs and under 0.7100.
On the daily chart, price is about to reach the 20-day MA that stands at 0.7080; a daily close significantly below could open the doors for a continuation of the decline.
