AUD/USD Meets Fresh Supply on RBA SoMP, Attacks 0.7400
The AUD/USD pair
snapped the previous rebound and resumed its recent downtrend, with the
bears tightening their grip following the release of RBA’s Statement of
Monetary Policy (SoMP).
AUD/USD drops from 0.7470 region post-SoMP
Currently,
the AUD/USD pair drops 0.70% to fresh eight-week lows of 0.7413, making
headways towards 0.74 handle. The selling interest around the AUD
intensified after latest RBA SoMP showed
downward revisions to the inflation and wage growth forecasts. While
also reflecting that the RBA leaves the door wide open for another rate
cut.
Meanwhile, markets digest the RBA quarterly statement and refrain from creating fresh positions heading into the US NFP report due later today, which may provide next direction on the US dollar across the board, eventually impacting the Aussie.
AUD/USD Levels to watch
The
pair finds the immediate resistance at 0.7500/09 (round number/ 5-DMA)
above which gains could be extended to the next hurdle located at
0.7540/50 (daily R2/ psychological levels). On the flip side, the
immediate support located at 0.7390 (multi-week low). Selling pressure
is likely to intensify below the last, dragging the Aussie 0.7346
(100-DMA).
