AUD/USD analysis: steady near multi-year lows

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7179

RBA left rates unchanged, current account deficit increases in Q2.
Australian Q2 GDP expected to post a 0.7% advance.

The AUD/USD fell to 0.7156, its lowest in more than two years amid ruling risk aversion. The pair quickly bounced from the level to stabilize around the current 0.7180 price zone. The pair got a short-lived boost from the RBA, which had its monthly monetary policy meeting. As largely anticipated, rates were left unchanged for a record 25th consecutive month. The statement showed that the central bank remains optimistic about wage's growth but not that much about business investment. On a negative note, the current account balance in Q2 posted a larger-than-expected deficit of 13.5B. Australian Q2 GDP will be out during the upcoming session, expected to print 0.7% vs. a 1.0% gain in Q1. China will release the August Caixin Services PMI seen at 52.7 from the previous 52.8. Technically, the risk remains skewed to the downside, given that in the 4 hours chart, the early advance met sellers around a firmly bearish 20 SMA, currently offering a dynamic resistance at around 0.7210. Technical indicators in the mentioned chart remain within negative territory, lacking directional strength.

Support levels: 0.7160 0.7130 0.7100

Resistance levels: 0.7210 0.7240 0.7275

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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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