AUD/USD struggles for direction in the 0.7080 area
|- Sport remains under pressure in sub-0.7100 levels.
- AUD still depressed following RBA’s Lowe’s speech last week.
- NAB Business Confidence, Home Loans next on the docket.
The Aussie Dollar is alternating gains with losses at the beginning of the week, now taking AUD/USD to the 0.7080 region after bottoming out around 0.7060 during last week.
AUD/USD looks to trade, data
The pair is now gaining some upside traction in the 0.7080 region despite the firmer note around the greenback and up and downs in the mood surrounding the riskier assets.
AUD is expected to remain under pressure in light of the upcoming US-China trade talks scheduled for the second half of the week in Beijing, all amidst the broader leg lower following dovish comments from Governor P.Lowe last week.
It is worth recalling that Governor Lowe now sees chances of a rate cut as evenly balanced, reverting the previous ‘no-so-dovish’ message from the central bank at its meeting on Tuesday.
What to look for around AUD
The confirmed neutral stance from the RBA appears to have spooked AUD-buyers for the time being. In addition, it is worth noting that the central bank cut its growth projections on the potential slowdown in China, the correction in the domestic house sector and rising trade jitters. The RBA now expects the economy to expand 2.5% from 3.5% previous in a year ending in June.
AUD/USD levels to watch
At the moment the pair is up 0.02% at 0.7085 and a breakout of 0.7169 (55-day SMA) would expose 0.7283 (200-day SMA) and then 0.7295 (2019 high Jan.31). On the downside, the next support is located at 0.7060 (low Feb.8) followed by 0.7021 (monthly low Oct.26 2018) and finally 0.7000 (psychological level).
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