AUD/USD Attacks 0.7200 on RBA’s Stevens

AUD/USD Attacks 0.7200 on RBA’s Stevens

24 May 2016, 05:35
Roberto Jacobs

AUD/USD Attacks 0.7200 on RBA’s Stevens

The recovery from ahead of 0.72 handle failed to gain traction following the comments from RBA Governor Stevens, with the AUD/USD pair extending to the downside near 0.7200.

AUD/USD trades below 5-DMA

Currently, the AUD/USD pair trades -0.27% at 0.7196, unable to take-out 5-DMA located at 0.7222. The Aussie keeps losses, as the ongoing RBA Governor Stevens’ speech failed to lift the sentiment around the AUD. The RBA Governor reinforced his pledge to combat lower inflation levels by deploying appropriate monetary policy framework, and thereby justifying his May rate cut stance.

Moreover, broad based US dollar strength also keeps the Aussie suppressed, with the DXY now rising +0.13% to 95.35 levels. Meanwhile, markets continue to digest more comments flowing in from the RBA chief as focus now remains on the Aus private capex data for fresh insights on the central bank’s rate outlook.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7250/61 (10 &200-DMA) above which gains could be extended to the next hurdle located at 0.7273/0.7300 (1h 200-SMA/ round number). On the flip side, the immediate support located at 0.7162/50 (Mar 2 Low/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7105 (April 29 & Mar 1 Low).


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