AUD/USD outlook: Australian Dollar hit 11-month low after RBA kept rates unchanged
AUD/USD
AUDUSD extends steep fall into second consecutive day and hit new lowest in eleven months in early Tuesday.
The pair was down 0.8% in Asian / early European trading on Tuesday, in extension of Monday’s 0.93% drop, signaling bearish continuation after limited correction.
Australian dollar is pressured by strong US dollar on expectations that the Fed will keep high interest rates for longer period, while policy decision of Reserve Bank of Australia was a key driver this morning.
The RBA kept its interest rates unchanged at 4.1% for the fourth month and said that recent rather positive economic data suggest that things are moving in desired way, though did not rule out further tightening, if needed.
Today’s decision also negatively influenced expectations for rate hike in November, dropping bets from initial 44% to 36%, which may further deflate Aussie dollar.
Daily studies remain firmly bearish, though fresh bears need close below last week’s low at 0.6331 to confirm signal and open way for extension towards targets at 0.6300/0.6272 (psychological / Nov 11 trough) which guards key support at 0.6170 (2022 low).
Limited corrections should be capped under broken Fibo 76.4% at 0.6403 (reinforced by 10DMA) to keep bears intact and provide better selling opportunities.
Res: 0.6357; 0.6378; 0.6403; 0.6444.
Sup: 0.6305; 0.6300; 0.6272; 0.6210.
Interested in AUD/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
