Current price: 0.6535
- AUD/USD recovered slightly from a decade-low but holds the bearish tone.
- The RBA could hit the Aussie with a surprise rate cut.
The AUD/USD pair recovered slightly on Monday after hitting an 11-year low last Friday, as risk assets partially rebounded from recent selloff amid expectations that central banks around the globe – and the Federal Reserve in particular – are poised to ease monetary policies to boost the economy. AUD/USD bounced from a low of 0.6433 but failed to sustain the move and remained capped by 0.6568. During Tuesday’s Asian session, the Reserve Bank of Australia is due to decide on monetary policy. Although the RBA is expected to keep its cash rate unchanged at 0.75%, some analysts believe that major central banks could take coordinated rate cuts to combat a potential global recession, and the RBA could be the first bank to do so.
AUD/USD short-term technical outlook
The short-term technical view has improved slightly, although AUD/USD continues to trade below its main SMAs and indicators tuned flat but remain in negative territory. The pair would need to regain the 0.6640 resistance zone, where a descendent trend line converges with the 20-day SMA, to pick up some pace and attempt a steeper recovery. Below this area, AUD/USD would likely remain subject to further selloffs with supports lining up at 0.6433 and the 0.6400 psychological level. However, a surprise cut from the RBA would put the Aussie under heavy pressure, with scope to test January 2009 low at 0.6344.
Support levels: 0.6433 0.6400 0.6344
Resistance levels: 0.6590 0.6640 0.6660
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.