AUD/USD still suffering the RBA message, near 0.7130
|- The pair is down more than 1% to the 0.7130/20 band.
- The recent neutral stance from the RBA keeps hurting AUD.
- RBA’s Lowe said the probability of a rate hike/cut appears balanced.
The sell-off in the Aussie Dollar remains well in place today, with AUD/USD shedding over 1% to the 0.7130/20 band.
AUD/USD offered post-RBA
Spot quickly tumbled to new 2-week lows in the 0.7130/20 band today in response to the recent shift to a neutral stance from the RBA in the wake of the speech by RBA Governor Philip Lowe.
The Aussie Dollar is giving away more than 2 cents today after a wave of selling orders wiped out Tuesday’s spike to the 0.7300 neighbourhood following Lowe’s speech.
In fact, at his speech to the National Press Club earlier on Wednesday, Governor P.Lowe now noted that the probability that the central bank could either cut or raise rates now appears balanced.
That said, the now neutral stance from the central bank opposes the recent markets’ perception of a ‘not-so-dovish’ message from the RBA at its meeting on Tuesday (which was the exclusive reason behind the abrupt move to the 0.73 area).
Moving forward into the Aussie docket, the NAB Quarterly Business Confidence is due tomorrow ahead of the RBA’s Monetary Policy Statement to be published on Friday.
AUD/USD levels to watch
At the moment the pair is losing 1.38% at 0.7133 and a breakdown of 0.7122 (low Feb.6) would open the door to 0.7076 (low Jan.25) and finally 0.7021 (monthly low Oct.26 2018). On the other hand, the next resistance aligns at 0.7183 (21-day SMA) seconded by 0.7290 (200-day SMA) and then 0.7295 (2019 high Jan.31).
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