AUD/USD drops 30 pips after ANZ's variable mortgage rate hike
|- The AUD/USD is feeling the pull of gravity as ANZ's variable mortgage rate hike has likely reinforced dovish Reserve Bank of Australia (RBA) expectations.
- The corrective rally could gather pace above the session high of 0.7211.
The AUD/USD fell 32 pips to a session low of 0.7171 after the Australia New Zealand (ANZ) bank hiked the variable mortgage rates by 16 basis points,.
The Australian currency continues to struggle to build on the bullish divergence of the hourly chart relative strength index (RSI) for the second day, seemingly due to speculation that the surprise mortgage rate hikes by the major Australia lenders would force the Reserve Bank of Australia (RBA) to hold rates at a record low of 1.5 percent into the next decade.
Looking ahead, the currency pair could drop to the previous day's low of 0.7144 if the global equity markets and copper prices turn south on fears of escalating US-China trade tensions.
At press time, the currency pair is trading at 0.7178.
AUD/USD Technical Levels
Resistance: 0.7238 (Aug. 24 low), 0.7259 (100-hour moving average), 0.7310 (July 2 low)
Support: 0.7171 (Session low), 0.7144 (previous day's low), 0.71 (psychological support)
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