AUD/USD drops 30 pips after ANZ's variable mortgage rate hike

The AUD/USD is feeling the pull of gravity as ANZ's variable mortgage rate hike has likely reinforced dovish Reserve Bank of Australia (RBA) expectations.
The corrective rally could gather pace above the session high of 0.7211.

Omkar Godbole FXStreet Contributor

The AUD/USD fell 32 pips to a session low of 0.7171 after the Australia New Zealand (ANZ) bank hiked the variable mortgage rates by 16 basis points,.

The Australian currency continues to struggle to build on the bullish divergence of the hourly chart relative strength index (RSI) for the second day, seemingly due to speculation that the surprise mortgage rate hikes by the major Australia lenders would force the Reserve Bank of Australia (RBA) to hold rates at a record low of 1.5 percent into the next decade.

Looking ahead, the currency pair could drop to the previous day's low of 0.7144 if the global equity markets and copper prices turn south on fears of escalating US-China trade tensions.

At press time, the currency pair is trading at 0.7178.

AUD/USD Technical Levels

Resistance: 0.7238 (Aug. 24 low), 0.7259 (100-hour moving average), 0.7310 (July 2 low)

Support: 0.7171 (Session low), 0.7144 (previous day's low), 0.71 (psychological support)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bearish	Neutral	Low
4H	Strongly Bearish	Neutral	Shrinking
1D	Bearish	Neutral	Expanding
1W	Bearish	Oversold	Expanding
Updated Sep 6, 04:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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