AUD/USD Analysis: bears still dominating Aussie crosses
|AUD/USD Current Price: 0.6908
- RBA Meeting's Minutes not expected to offer something new.
- Aussie at risk of trimming election-related gains once the enthusiasm fades.
The Australian dollar gapped higher against most major rivals at the weekly opening, a reaction to weekend local elections, as the ruling coalition led by PM Morrison retained power. Polls ahead of the result were pointing to a Labour victory, which would have triggered some political chaos in the fragile Australian economy. The result, however, is positive only short-term, as the center-right government isn't in good terms with China, its biggest commercial partner. The Reserve Bank of Australia will release the Minutes of its latest minutes early Tuesday, while by the end of the day, early Asia on Wednesday, Governor Lowe will offer a speech titled The Economic Outlook and Monetary Policy, probably, having a more relevant effect on the Aussie, as Minutes are not expected to surprise.
The AUD/USD pair reached a daily high of 0.6933, easing to the current 0.6900 price zone on the back of dismal market mood leading to sharp losses in worldwide equities. The 4 hours chart for the pair shows that it is currently battling with a mild-bearish 20 SMA, while the RSI resumed its decline after failing to surpass its mid-line, and the Momentum remains below its mid-line and the daily high, all of which keeps favoring a downward extension particularly if the pair falls below 0.6865, the immediate support.
Support levels: 0.6865 0.6825 0.6775
Resistance levels: 0.6930 0.6965 0.7000
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