AUD/USD Analysis: RBA preparing for a rate cut, bears led
|AUD/USD Current Price: 0.6880
- AUD/USD returned to multi-month lows, equities' rally contained the downside.
- RBA Minutes showed that policymakers dropped the words "not a strong case" for a near-term move.
The AUD/USD pair resumed its decline and finished the day at around 0.6880, not far from its recent lows. The Aussie dived after the RBA Meeting's Minutes showed that policymakers dropped the words "not a strong case" for a near-term move in the cash rate, seen by speculative interest as the first step toward a rate cut. The central bank emphasized that a rate cut could be appropriate if the labour market doesn't improve. The pair closed the gap left Monday, now hovering around Friday's close. Australia will release the Westpac Leading Index for April this Wednesday, previously at 0.2%, and Q1 Construction Word Done, seen flat after falling 3.1% in the previous quarter.
From a technical point of view, the pair is back to bearish according to the 4 hours chart trading below its 20 SMA, which heads south at around 0.6895, as technical indicators lack directional strength, the Momentum around its 100 level and the RSI closer to oversold readings at 39. The pair would need to break the 0.6865 support to extend its decline toward the 0.6800/20 region during the upcoming sessions, while below this last a bearish extension should be expected despite oversold conditions.
Support levels: 0.6865 0.6825 0.6775
Resistance levels: 0.6905 0.6930 0.6965
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