AUD/USD Analysis: dull trading continues with risk skewed to the downside
|AUD/USD Current Price: 0.6778
- RBA Meeting’s Minutes reiterated the dovish stance, easing bias.
- AUD/USD consolidating below the critical 0.6820 price zone.
The AUD/USD pair has continued to trade lifeless just below the 0.6800 figure, peaking for the day at 0.6794 at the beginning of the day. The Reserve Bank of Australia released the Minutes of its latest meeting, which showed that policymakers discussed other countries’ use of “unconventional monetary policy measures,” somehow hinting the implementation of QE if required. The document also showed that the central bank could continue cutting rates and that rates will remain low for an extended period. The Aussie barely reacted to the statement, as the central bank maintained its dovish easing stance. Early Wednesday, Australia will release the Westpac Leading Index for July, previously at -0.08%.
AUD/USD short-term technical outlook
The AUD/USD pair is technically neutral-to-bearish according to the 4 hours chart, still seesawing around a flat 20 SMA and below bearish 100 SMA. Technical indicators in the mentioned chart lack directional strength around their midlines. The pair has been ranging pretty much since the month started, with sellers re-surging on attempts to surpass the 0.6800 level. A couple of relevant highs are located in the 0.6820 area, where, in the daily chart, the pair has a firmly bearish 20 DMA.
Support levels: 0.6740 0.6700 0.6675
Resistance levels: 0.6790 0.6820 0.6860
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