AUD/USD drops 64 pips to 0.7175 as RBA's Lowe says rate outlook is more evenly balanced
|- The AUD is taking a hit on dovish comments from RBA's Lowe.
- The central bank governor said that interest rate cuts as likely as rises.
The Aussie dollar is being offered across the board in response to comments by Reserve Bank of Australia's (RBA) governor Lowe that the rate outlook is now more evenly balanced.
"Over the past year, the next-move-is-up scenarios were more likely than the next-move-is-down scenarios. Today, the probabilities appear to be more evenly balanced," Lowe told the National Press Club in Sydney.
He added further that if the job market tightened, then rates would rise, but any softening would force the RBA to reassess the situation.
The major change in attitude toward interest rates is hurting AUD/USD pair, which is currently trading at the session low of 0.7175 - down 64 pips from the high of 0.7239 seen before Lowe's speech.
It is worth noting that markets already put the chance of a rate cut this year at better than 50-50, even though the RBA, until today, maintained that the next move in rates could be on the higher side. With RBA's change of tone on interest rates, that rate cut probability could rise further.
So, the path of least resistance for the AUD is now to the downside.
AUD/USD Technical Levels
AUD/USD
Overview:
Today Last Price: 0.7178
Today Daily change: -58 pips
Today Daily change %: -0.80%
Today Daily Open: 0.7236
Trends:
Daily SMA20: 0.7187
Daily SMA50: 0.7169
Daily SMA100: 0.7174
Daily SMA200: 0.7289
Levels:
Previous Daily High: 0.7265
Previous Daily Low: 0.7194
Previous Weekly High: 0.7296
Previous Weekly Low: 0.7138
Previous Monthly High: 0.7296
Previous Monthly Low: 0.6684
Daily Fibonacci 38.2%: 0.7238
Daily Fibonacci 61.8%: 0.7221
Daily Pivot Point S1: 0.7198
Daily Pivot Point S2: 0.716
Daily Pivot Point S3: 0.7126
Daily Pivot Point R1: 0.7269
Daily Pivot Point R2: 0.7303
Daily Pivot Point R3: 0.7341
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.