- 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.
|Today last price||0.6856|
|Today Daily Change||-0.0008|
|Today Daily Change %||-0.12|
|Today daily open||0.6864|
|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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