AUD/USD fades initial spike on RBA Governor Lowe comments, trades below 0.6800

RBA's Lowe says QE is not their agenda at this point.
US Dollar Index extends sideways grind near 98.30.
Coming up: Trade Balance and New Home Sales data from US.

Eren Sengezer FXStreet

After advancing to a fresh daily high of 0.6795 with the initial reaction to Reserve Bank of Australia (RBA) Governor Phillip Lowe's remarks on the monetary policy outlook, the AUD/USD pair reversed its direction and was last seen trading at 0.6775, where it was virtually unchanged on a daily basis.

RBA's Lowe dismisses need for QE

While speaking at the Annual Australian Business Economists Dinner, in Sydney on Tuesday, Reserve Bank of Australia (RBA) Governor Phillip Lowe said that quantitative easing (QE) was not on their agenda. "There may come a point when QE would help, but I don’t expect us to get there," Lowe added to provide a short-lasting boost to the AUD.

However, Lowe further noted that all options were still on the table if they were to observe a rapid increase in the unemployment rate and a drop in inflation to keep the pair's gains capped.

On the other hand, the greenback stays resilient against its rivals with the US Dollar Index moving sideways near the 98.30 mark for the second straight day and doesn't allow the pair to gather bullish momentum.

In the second half of the day, New Home Sales, Goods Trade Balance and the Conference Board's Consumer Confidence Index data from the US will be looked upon for fresh impetus. Additionally, investors will be keeping an eye on fresh developments surrounding the US-China trade dispute.

According to Chinese news outlets, Xinhua and Global Times, negotiators have reached an agreement on a phase-one deal that includes tariff rollbacks, albeit sides still having differences on the duties.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.6776
Today Daily Change	-0.0002
Today Daily Change %	-0.03
Today daily open	0.6778

Trends
Daily SMA20	0.6845
Daily SMA50	0.6808
Daily SMA100	0.683
Daily SMA200	0.693

Levels
Previous Daily High	0.68
Previous Daily Low	0.6767
Previous Weekly High	0.6835
Previous Weekly Low	0.678
Previous Monthly High	0.693
Previous Monthly Low	0.667
Daily Fibonacci 38.2%	0.678
Daily Fibonacci 61.8%	0.6787
Daily Pivot Point S1	0.6763
Daily Pivot Point S2	0.6749
Daily Pivot Point S3	0.673
Daily Pivot Point R1	0.6796
Daily Pivot Point R2	0.6815
Daily Pivot Point R3	0.6829

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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