AUD/USD Analysis: getting ready for a long-term slump

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6853

Aussie weakness to become more evident once below 0.6820.
RBA to release the Minutes of its latest meeting may offer insights of what's to come.

The AUD/USD pair fell to 0.6847, a fresh multi-month low, as the Aussie remains among the less attractive currency among majors. There were no direct macroeconomic news that could affect the pair at the beginning of the day, although headlines indicating that India is imposing tariffs on US goods took its toll on the Asian-currency bloc, amid fears trade tension will continue to hurt the Chinese economy. Softer gold and oil prices and dull action among equities added to the AUD/USD pair negative tone. This Tuesday, the RBA will release the Minutes of its latest meeting, which will shed some light over policymakers' decision to cut rates, while offering insights on what's to come. The country will also release Q1 House Price Index, seen down by 1.6% in the three months to March.

The AUD/USD pair heads into the Asian opening trading around its lows, and firmly bearish in the short-term picture, as, in the 4 hours chart, technical indicators have barely corrected extreme oversold conditions before resuming their declines, while the 20 SMA heads sharply lower above the current level, and far below the larger ones. The case of a longer-term bearish extension will increase if the pair loses 0.6820, a significant long-term support.

Support levels: 0.6820 0.6775 0.6730

Resistance levels: 0.6900 0.6940 0.6980

View Live Chart for the AUD/USD

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.

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