AUD/USD analysis: back below 0.7400 and near key support
AUD/USD Current price: 0.7380
- RBA Meeting's Minutes confirmed policymakers believe that the next move in rates will likely be up.
- AUD/USD retreats sub-0.7400, decline limited by positive tone in equities.
The Aussie gave up to dollar's demand, although the decline in the AUD/USD pair was shallow when compared to other major pairs, as the positive tone of equities contained the decline. The pair settled a couple of pips above a daily low of 0.7378, also weighed by gold prices, which fell to fresh yearly lows on the back of Fed Powell's confident stance. Earlier on the day, the RBA released the Minutes of its latest meeting, which confirmed that policymakers believe that the next move in rates will likely be up, should progress in lowering unemployment and boosting inflationary pressures continue. But the document also expressed concerns about the downside risk that trade tension between the US and China represent to growth, also about the impact of high household debt on the economy. Australia will see the release of the June Westpac Leading index previously at -0.2%. The pair is technically neutral-to-bearish as in the 4 hours chart, it is currently below the 20 and 100 SMA, both directionless and in a tight 10 pips range, while technical indicators head entered negative territory, maintaining their downward slopes but coming from a consolidative stage around their midline. The downward momentum will likely accelerate on a break below 0.7370, the immediate support.
Support levels: 0.7370 0.7335 0.7310
Resistance levels: 0.7410 0.7450 0.7490
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
