AUD/USD Keeps Lows Near 0.7370

AUD/USD Keeps Lows Near 0.7370

6 May 2016, 11:36
Roberto Jacobs

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).


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