FxWirePro: AUD/USD Breaks Below 0.7450 (38.2% Fib), Bears Tightening Their Grip Post RBA SoMP Release
- AUD/USD drops from 0.7470 region to break below 38.2% Fib of Jan to April rise at 0.7450.
- Aussie bears tightening their grip, resume downside following the release of RBA’s Statement of Monetary Policy (SoMP).
- Latest RBA SoMP showed downward revisions to inflation and wage growth forecasts, keeps alive rate cut possibilities.
- The risk-off environment has also returned post RBA, as reflected by the uptick in the VIX and lower US 30-Year US Treasury yields.
- Markets cautious heading into the US NFP report due later today, which may provide next direction on the US dollar across the board, eventually impacting the pair.
- We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-Aussie-buoyed-by-upbeat-data-flow-AUD-USD-edges-higher-from-382-Fib-support-204294).
- Target 1 has been achieved, we recommend holding for further downside.