AUD/USD Current price: 0.7061

  • Australian dollar can't recover alongside equities after RBA's dovish switch.
  • NAB's Business Confidence and Business Conditions up next.

The AUD/USD pair fell to its lowest in over a month, heading into the Asian opening trading around the 0.7060 price zone. Far from its yearly low, as the pair touched 0.6775 during the flash crash suffered early January, the Aussie entered a selling spiral after the sudden change of course of Governor Lowe last week, saying that chances of a rate cut are equal to those of a rate hike, followed by an RBA's downgrade of economic projections for this year and the next. Despite the solid performance of equities, the commodity-related currency remained unattractive, another sign that bears are determined to push it lower. Australia will release December Home Loans this Tuesday, foreseen declining by 2.0% after a 0.9% slide in the previous month, alongside Investment Lending for Homes, also expected to be negative. Both numbers are relevant as Governor's Lowe flip to neutral came amid concerns about the local housing sector. The country will also release NAB's Business Confidence, and NAB's Business Conditions for January. China will offer some minor releases with more relevant figures scheduled for later this week.

The pair is technically bearish according to intraday readings, as, in the 4 hours chart, an attempt to regain the upside was contained by selling interest around a firmly bearish 20 SMA, currently at 0.7090, while technical indicators flirted with their midlines before turning south, now at daily lows and with the RSI in oversold levels. The pair has its next support in the 0.7020/30 price zone, with a break below it resulting in a steeper decline toward 0.6940.

Support levels: 0.7025 0.6980 0.6940

Resistance levels: 0.7090 0.7125 0.7160  

View Live Chart for the AUD/USD

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: consolidates recent gains, holds above 200-day SMA

The Euro and the US Dollar posted mixed results across the board on Wednesday. The greenback outperformed during the first half of the day after Fed rate cut expectations were tampered by comments from Fed’s officials on Tuesday.


GBP/USD recovers to 1.2700 post-UK political hustings

With the UK Prime Minister (PM) frontrunner Boris Johnson’s surprising comments on chances of the no-deal Brexit at the political hustings, followed by cross-party MPs’ plan to move forward to direct the Brexit.


USD/JPY peeps above 108.00 on US-China trade truce reports

The latest reports of a US-China trade truce triggered a renewed risk-on wave and knocked-off the Yen, with the USD/JPY pair now peeping above the 108 handle while markets digest the latest comments by Japan's Suga on US-Japan relationship.


US Q1 GDP Final Revision Preview: Look ahead not behind

The second revision and third version of first quarter annualized GDP is expected to be unchanged at 3.1%. The initial release was 3.2% and the first revision was 3.1%. The unexpected strength of the US economy in the first quarter came after a successful 2018.

Read more

Gold: Off 6-year highs, but breakout on monthly chart a done deal

With the 14-day relative strength index (RSI) still holding well above 70.00, the yellow metal may drop below $1,400 in the next 24-36 hours. Also, reports of temporary US-China trade truce could weigh over the safe haven metal.

Gold News