- Aussie Dollar gives away initial gains, drops to sub-0.79 area.
- RBA minutes left no room for surprises in early trade.
- AU wage data next of relevance on Wednesday.
After advancing to the area of 0.7930 during the Asian trading hours, AUD/USD met a wave of selling orders that forced it to not only give away those initial gains but also to retreat to the sub-0.7900 region, or fresh session lows.
AUD/USD now looks to wage data
Spot paid little-to-nil attention to the RBA minutes released earlier today, as they left no room for surprises, coming in well in line with initial market expectations and noting once again that the labour market, business conditions, activity overseas and commodity prices have all been performing above the central bank’s expectations.
In addition the RBA seems to have now shifted its interest from the exchange rate – view that prevailed in the last couple of years – to the labour market, with wages in the centre of the debate.
In the meantime, the pair is now navigating the negative territory in the 0.7900 neighbourhood, around a cent lower than last week’s peaks in the boundaries of the psychological 0.80 mark and down nearly 3% since 2018 tops in the mid-0.8100s recorded in late January.
Furthermore from the speculative community, AUD net longs dropped to 5-week lows during the week ended on February 13, according to the latest CFTC report.
Looking ahead, and in light of the recent message from the RBA, Wage Price Index for the fourth quarter is due tomorrow, seconded by Construction Work Done during the same period.
AUD/USD levels to watch
At the moment the pair is losing 0.25% at 0.7893 and a breakdown of 0.7882 (low Feb.20) would open the door to 0.7839 (55-day sma) and finally 0.7759 (2018 low Feb.9). On the other hand, the next resistance aligns at 0.7946 (21-day sma) seconded by 0.7991 (high Feb.16) and then 0.8136 (2018 high Jan.26).
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.