AUD/USD analysis: Rally halted, risks increasing
|AUD/USD Current price: 0.7557
The minutes of the Reserve Bank of Australia added not much new information. The minutes warned about weaker conditions in the labor market and appear to be more dovish than market expectations. The document weakened the Australian dollar during the Asian session and then it stabilized. The AUD/USD pair, after trading yesterday momentarily above 0.7600, started to decline and dropped further after RBA minutes. It found support during the European session above 0.7530 and it rose modestly on American hours, unable to take more benefit from the slide of the US dollar. The decline in Iron one futures also contributed to the weak Aussie.
From a technical perspective, indicators in the 4-hour chart show mix signals. While Momentum still points to the downside, RSI turned to the upside. For the next hours, consolidation between 0.7570 (20-SMA) and 0.7530 could persist. If it climbs and holds above 0.7570, another test of 0.7600 seems possible. While on the opposite direction a decline below 0.7530, would expose 0.7500. On a wider perspective, the bearish bias persists after the pair respected the 20-day moving average that stands at 0.7585. A daily close significantly on top would point to more gains.
Support levels: 0.7530 0.7515 0.7470
Resistance level: 0.7590 0.7610 0.7640
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.