AUD/USD on Free-Fall, Aus Data Weighs
AUD/USD
is trading under very heavy pressure following the release of the
Australian consumer inflation expectation, which came at 3.2% in May vs
3.6% expected.
Market remains dovish AUD on RBA rate cut expectations
The pair exchanges hands at day lows of 0.7330, having broken decisively
a key support level at 0.7350. The Australian Dollar had a brief drive
through 0.74 on US Wednesday, following a major Crude oil inventory miss
to the downside. a large draw-down that caused Oil to spike and
underpin the Aussie, only to be snapped back down as the market
continues to price in further RBA rate cuts.
Downside pressure likely to persist
According to the OZForex Research Team: "Downside pressure will likely
remain intact through the short term as inflation forecast remain flat
and additional rate cuts appear likely. The RBA has seemingly adopted a
more dovish tone since cutting rates and markets will be keenly attuned
to macroeconomic indicators and central bank rhetoric that offer support
to accommodative monetary policy. A consolidated break below support at
0.7330 and a move below the 200 moving average could foster further
losses and a run toward 0.72 and the psychological 0.70."
