AUD/USD drops to 50-day MA support on RBA minutes

  • AUD/USD tests 50-day MA support as RBA minutes retained easing bias. 
  • Aussie house price index dropped less-than-expected in the second quarter. 

The offered tone around the AUD strengthened, pushing the AUD/USD pair lower to the 50-day moving average support of 0.6849 after the minutes of the Reserve Bank of Australia's September meeting said the board would consider further easing if needed to support growth and inflation targets. 

The minutes added that the upward trend in wage growth appears to have stalled, there is spare capacity in the labor market and risks to the global outlook continue to be tilted to the downside. 

The central bank's take on wage growth likely strengthened the bearish pressure around the AUD. Also, the Australian house price index fell 0.7% quarter-on-quarter in the second quarter, the data released at 01:30 GMT showed. The market was expecting a decline of 1% following the 3% drop in the first quarter. 

So far, the better-than-expected data has failed to put a bid under the AUD, possibly due to RBA's dovish language on wages. 

The bank is expected to cut rates in November and February, having delivered back-to-back rate cuts in July and August. 

As of writing, AUD/USD is trading at 0.6852, representing 0.18% losses on the day, having hit a high of 0.6870 earlier today. The drop to the 50-day MA was expected, as the bull case had weakened with the repeated failure at the key Fibonacci level of 0.6880 in the last four trading days. 

Technical levels


Today last price 0.6856
Today Daily Change -0.0008
Today Daily Change % -0.12
Today daily open 0.6864
Daily SMA20 0.6796
Daily SMA50 0.6851
Daily SMA100 0.6902
Daily SMA200 0.7012
Previous Daily High 0.6885
Previous Daily Low 0.6853
Previous Weekly High 0.6895
Previous Weekly Low 0.6837
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6873
Daily Fibonacci 61.8% 0.6865
Daily Pivot Point S1 0.685
Daily Pivot Point S2 0.6835
Daily Pivot Point S3 0.6818
Daily Pivot Point R1 0.6882
Daily Pivot Point R2 0.6899
Daily Pivot Point R3 0.6914



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