AUD/USD Selling Accelerates Below 0.7350, Targets 0.7300
The AUD battering extends into the European session, knocking-off AUD/USD deeper into the red zone as growing expectations of RBA rate cut weighs heavily on the Aussie.
AUD/USD heading towards 200-DMA at 0.7264
Currently, the AUD/USD pair drops -0.69% to fresh two-day lows of 0.7314, gradually making headway towards the critical 200-DMA support located at 0.7264. The Aussie keeps falling as the European traders hit their desks and react negatively to the dismal Australian inflation data, which reinforced further RBA rate cut bets. Australian consumer inflation expectation came in at 3.2% in May versus 3.6% expected.
Further, the latest report from Moody’s issued a warning that widening WA budget deficits projected for FY 2016/17 and over the medium term are credit negative. This also added to the negative sentiment around the Aussie. While the AUD traders ignored higher commodities, especially the oil prices, as focus on remains on the OZ fundamentals.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7350 (100-DMA) above which gains could be extended to the next hurdle located at 0.7373 (daily high). On the flip side, the immediate support located at 0.7300 (round figure). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7264 (200-DMA).