AUD/USD Current Price: 0.6787
- RBA’s Governor Lowe said policymakers studying alternative stimulus tools.
- Risk aversion adds amid tensions between the US and China add pressure on the Aussie.
- AUD/USD at risk of extending its slide after failing to extend advance beyond 0.6800.
The AUD/USD pair closed Friday with losses at 0.6785 unable to extend gains beyond the 0.6800 figure. Weekly basis, however, the pair ended it unchanged trimming early losses that sent it to a fresh multi-year low of 0.6676. RBA’s Governor Lowe testified before the House of Representatives’ Standing Committee on Economics and said that the Aussie’s depreciation bodes well for the economy, but also reiterated that further rate cuts are on the table, mainly if other central banks continue in the easing path. He added that Australian policymakers are studying other unconventional stimulus measures such as bond buying, while also highlighted the risks related to the US-China trade war. The commodity-linked currency eased with his dovish words, later weighed by US President Trump comments on China, indicating that they are far from a deal. The Australian macroeconomic calendar will remain empty at the beginning of the week.
AUD/USD short-term technical outlook
The daily chart for the AUD/USD pair suggests that the recovery from the mentioned multi-year low was corrective and that such correction could be complete, as the recovery stalled well below all bearish moving averages, while technical indicators barely corrected extreme oversold conditions before resuming their declines. In the 4 hours chart, technical indicators head lower, the Momentum holding above its mid-line and retreating from overbought levels and the RSI already within negative levels. The pair holds above a directionless 20 SMA, which provides an immediate support at 0.6775, with a break below it favoring a continued decline in the upcoming sessions.
Support levels: 0.6775 0.6730 0.6680
Resistance levels: 0.6815 0.6840 0.6870
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. 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.