FXStreet (Guatemala) – AUD/USD is much lower as we progress through early Asia falling back from the 0.70 handle and making fresh lows since yesterday with a big day ahead.
AUD/USD dropped back from the hourly 200 SMA and fell below the 50 SMA as well, following the downside of the NZD that keeps dropping post the RBNZ cut and leaves the door wide open for further cuts and weakness in the bird. Risk sentiment is back to negative as well with a poor performance on Wall Street.
The dovish statement from the RBNZ has put more weight towards a possible cut from the RBA who are willing to act at the appropriate time on interest rates. The day ahead now comes with a series of data releases from China with CPI/PPI and at the same time we have the key jobs data from Australia.
RBA is next focus next month
Overnight, RBA’s Deputy Governor Philip Lowe spoke at the CEDA conference in Melbourne. Analysts at TD Securities explained the details, “There was no hint from the speech that the RBA would entertain a rushed rate cut. He continued to deliver the RBA’s message that it is more or less comfortable with the levels of the AUD, again refraining from jawboning the currency lower, he downplayed concerns over China and the soft Q2 GDP read was brushed aside. Once again, Lowe reinforced the Bank’s view that monetary policy does have its limits, suggesting the RBA is reluctant to lower rates any time soon. He did state that the missing ingredient in the Australian economy is investment that needed innovation and productivity, not just a low AUD and low rates.”
AUD/USD levels
Failures below the key resistance at the 200 SMA on the hourly chart and the slip below the 50 SMA that followed on further supply has put the pair in negative territory again.
To the downside, 0.6500 may have psychological importance. Looking back on the longer-term charts, there are very little technicals until 0.6000. 0.6850 guards 0.6774 June 2004 low then 0.6280 2009 March lows and also 0.6122/.6010, the 2008 lows.
(Market News Provided by FXstreet)