AUD/USD drops to 50-day MA support on RBA minutes
|- AUD/USD tests 50-day MA support as RBA minutes retained easing bias.
- Aussie house price index dropped less-than-expected in the second quarter.
The offered tone around the AUD strengthened, pushing the AUD/USD pair lower to the 50-day moving average support of 0.6849 after the minutes of the Reserve Bank of Australia's September meeting said the board would consider further easing if needed to support growth and inflation targets.
The minutes added that the upward trend in wage growth appears to have stalled, there is spare capacity in the labor market and risks to the global outlook continue to be tilted to the downside.
The central bank's take on wage growth likely strengthened the bearish pressure around the AUD. Also, the Australian house price index fell 0.7% quarter-on-quarter in the second quarter, the data released at 01:30 GMT showed. The market was expecting a decline of 1% following the 3% drop in the first quarter.
So far, the better-than-expected data has failed to put a bid under the AUD, possibly due to RBA's dovish language on wages.
The bank is expected to cut rates in November and February, having delivered back-to-back rate cuts in July and August.
As of writing, AUD/USD is trading at 0.6852, representing 0.18% losses on the day, having hit a high of 0.6870 earlier today. The drop to the 50-day MA was expected, as the bull case had weakened with the repeated failure at the key Fibonacci level of 0.6880 in the last four trading days.
Technical levels
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.