AUD/USD on Free-Fall, Aus Data Weighs
is trading under very heavy pressure following the release of the
Australian consumer inflation expectation, which came at 3.2% in May vs
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."