AUD/USD: Bears Relentless on Increased Odds of RBA Rate Cuts
The bears tightened their grip on the AUD during the European session, smashing AUD/USD to fresh twelve-week lows near 0.7150 levels.
AUD/USD eyes 0.71 handle
Currently, the AUD/USD pair sinks -0.90% at 0.7158, trading within a striking distance of fresh multi-week lows reached at 0.7154 last hour. The Aussie keeps falling as the latest comments from the RBA governor Stevens fuelled speculation that further rate cuts are likely from the Australian central bank in an ongoing effort to boost inflation levels and overall economic growth.
The central banker said that he remains very committed to inflation targeting monetary policy framework, which indicates that he is not done cutting interest rates. Meanwhile, the Aussie remains unperturbed by the risk-on sentiment persisting in Europe as the AUD suffers from increased odds of a RBA rate cut in the upcoming months.
Focus now remains on the US housing data due later in the NA session, while the main drivers for the Aussie this week remain the US GDP and Aus private capex numbers.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7244/61 (10 &200-DMA) above which gains could be extended to the next hurdle located at 0.7265/0.7300 (1h 200-SMA/ round number). On the flip side, the immediate support located at 0.7105 (April 29 & Mar 1 Low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7065 (Feb 14 Low).