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).
