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.

Omkar Godbole FXStreet Contributor

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

AUD/USD

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

Trends
Daily SMA20	0.6796
Daily SMA50	0.6851
Daily SMA100	0.6902
Daily SMA200	0.7012

Levels
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

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold rises above $4,950 as US-Iran tensions boost safe-haven demand

Gold price holds positive ground near $4,985 during the early Asian session on Thursday. The precious metal recovers amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Zora launches attention markets on Solana network

Zora has launched a new attention markets feature on the Solana network, allowing users to trade and speculate on emerging online cultural trends.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.