AUD/USD: 0.7505 the key resistance in better offered territory
|AUD/USD is in consolidation, with a slight bid ahead of the Tokyo open stalling at the 4hr 200 sma at 0.7497.
Markets are awaiting the BoJ and FOMC this week while from Australia, the focus remains with the CPI data and the RBA's intentions in respect to how to handle a low inflationary environment. "The uncertainty generated by Brexit plus further RBA easing should be negative for the AUD during the months ahead. We target sub-0.72," explained analysts at Westpac.
AUD/USD levels
For the meantime, the price is stalling on the downside after a string level of supply hitting the market in the middle of this month from levels above 0.7650. 0.7442 has been the recent low and recoveries have fallen just shy of 0.7500 so far. "Having broken below the 0.7503 9th June high, the near term risk has shifted to the downside and we target the 55 day ma at 0.7402 and the 200 day ma at 0.7321, explained analysts at Commerzbank, adding, "The 2016 support line lies 0.7287. Rallies are expected to remain capped by 0.7505."
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