AUD/USD Sellers in Control post-RBA minutes, Below 0.7500
The AUD/USD pair extends losses for the second straight session this Tuesday, moving further away from eight month tops reached the day earlier, after the RBA minutes was read a tad more dovish than expected.
AUD/USD breaches hourly 100-SMA support
Currently, the AUD/USD pair drops -0.37% to 0.7486, testing fresh session lows struck at 0.7480 few minutes ago. Having failed to take-out 0.76 barrier in the previous session, the Aussie continues to drift lower and now came under renewed selling pressure following the release of RBA’s monetary policy meeting minutes.
Although the minutes revealed that the central bank seems more optimistic on the economic prospects, but low inflation continues to remain a concern and hence, the RBA sees more scope for easing should the price pressures fail to pick up. While the minutes showed that the AUD levels was adjusting to the changes in the economy and helped the economic transition to the non-mining sector.
Moreover, broad based sell-off across the commodities space also collaborates to the downside in the resource-linked Aussie. Gold is down -1.30% and slips below $ 1230, copper loses -0.70%, while both crude benchmarks are modestly lower by about -0.50%.
Next on tap for the major in the day remain the US retail sales and PPI data ahead of Wednesday’s CPI, industrial production and housing data from the US. While FOMC decision due tomorrow will remain the key risk event for this week.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7517/28 (5-DMA/1h 50-SMA) above which gains could be extended to the next hurdle located at 0.7580/0.7600 (daily R1/ round number). On the flip side, the immediate support located at 0.7447 (1h 200-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7409/07 (Mar 9 & 8 Low).
(Market News Provided by FXstreet)
