AUD/USD analysis: no progress made, but downside still limited
|AUD/USD Current price: 0.7676
The AUD/USD pair held within its usual 0.76/0.77 range for one more day, easing at the beginning of the day after the release of the RBA Minutes, which showed that policymakers will keep rates low for longer. Among the highlights the minutes attributed the decline in Q3 GDP to bad weather, coal supply disruptions and slower than expected growth in consumption, considering it temporarily. Also, medium-term inflation expectations remained “well anchored” as the committee anticipates inflation will pick up gradually. Policymakers reiterated their concern over Aussie strength, as an appreciating AUD could complicate the economic transition. Technically, the 4 hours chart shows that the price is now trying to recover above a bearish 20 SMA, whilst technical indicators have turned modestly higher, but continue hovering around their mid-lines, not enough to confirm additional gains ahead. As long as above 0.7600, the downside seems well limited, although gains beyond 0.7700 will likely be short-lived, with bulls rushing to take profits out of the table.
Support levels: 0.7630 0.7600 0.7565
Resistance levels: 0.7700 0.7735 0.7700
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