AUD/USD Cracks 0.74 on Dovish RBA SoMP, 100-DMA Eyed

AUD/USD Cracks 0.74 on Dovish RBA SoMP, 100-DMA Eyed

6 May 2016, 06:49
Roberto Jacobs

AUD/USD Cracks 0.74 on Dovish RBA SoMP, 100-DMA Eyed

The AUD battering continues as we progress towards the late-Asian trades, with markets still assessing the RBA’s quarterly Statement of Monetary Policy (SoMP), which underscored concerns over softer inflation outlook.

AUD/USD drops almost 1 big figure

Currently, the AUD/USD pair drops -1.04% near fresh nine-week lows of 0.7382, having finally breached 0.74 handle. The Australian dollar remains relentlessly offered versus its American dollar after downward revisions to the Australian inflation and wage growth outlook cast a mantle of doubt over the OZ nation’s economic growth prospects and bolstered calls for further RBA rate cuts in a bid to spur the ailing economy.

More so, renewed sell-off in the oil prices further exacerbated the pain in the resource-linked Aussie and hence, added to the prevalent risk-off trades in the markets. While wide-spread cautiousness ahead of the US payrolls data, also collaborates to the downbeat sentiment around the AUD/USD pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7495/00 5-DMA/ round number) 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 0.7382 (nine-week low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7346 (100-DMA).


Share it with friends: