AUD/USD Keeps Lows Near 0.7370
The Aussie dollar keeps its negative note on Friday, taking AUD/USD to the lower bound of the range near 0.7370.
AUD/USD hurt by the RBA
Spot
has retreated to 2-month lows in sub-0.7400 levels in response to a
dovish tone from the RBA’s Statement on Monetary Policy (SoMP) published
early in the Asian session.
The central bank revised lower its
forecasts for the inflation, but left unchanged its projections for GDP
and unemployment. The announcements have opened the door to potential 25
bp/50 bp rate cuts in the coming months, heavily weighing on AUD.
AUD/USD levels to watch
At
the moment the pair is dropping 1.26% at 0.7371 and a breakdown of
0.7336 (100-day sma) would open the door to 0.7261 (200-day sma) and
then 0.7210 (61.8% Fibo of 0.6828-0.7836). On the other hand, the next
up barrier lines up at 0.7597 (23.6% Fibo of 0.6824-0.7836) ahead of
0.7645 (20-day sma) and finally 0.7720 (high May 3).
