AUD/USD limited recovery, holds near 0.7600

AUD/USD limited recovery, holds near 0.7600

4 July 2017, 18:38
Roman Vashchilin

AUD/USD is consolidating post RBA losses as it remains unable to rally above 0.7600. Recently it climbed to 0.7615 but lost strength.  Currently, it trades at 0.7605, 80 pips below Asian session highs. 

RBA weakens AUD 

The Reserve Bank of Australia (RBA), as expected, left interest rates unchanged at 1.50% earlier today. The tone of the statement showed no signals of a shift to a more hawkish rhetoric. The central bank said again that a stronger Aussie, would complicate the economic adjustment.

RBA: Stays patient, but the next move is set to be up - HSBC

RBA: Steady as she goes - ANZ

The tone used in the statement pushed AUD/USD sharply to the downside. It bottomed on European hours at 0.7590, the lowest since last Wednesday. 

The slide weakened the bullish perspective. Last week the rally peaked at 0.7715, a 3-month high. Then lost momentum, started to correct lower amid a stronger US dollar and accelerated today, after the RBA on the back of a slide of the Aussie. 

The momentum eased significantly and now the price is around the 20-day moving average. A daily close significantly below that average would add signals of a continuation of the correction. 

Market volatility is likely to be reduced in the coming hours taking into account that is a holiday in the US (Independence Day). Tomorrow the key event will be the release of the minutes of the latest FOMC meeting. 

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