AUD/USD hit 12-day low on dovish RBA Lowe's comments

RBA's Lowe sees interest rates staying low for longer, expresses concerns regarding stagnant labor productivity.
Lowe's dovish comments bolstered the already bearish technical setup in the AUD/USD pair.

Omkar Godbole FXStreet Contributor

The AUD/USD pair hit a 12-day low of 0.7556 after the Reserve Bank of Australia (RBA) governor Lowe said any increase in the country's official cash rates was still "some time away".

Lowe expressed concerns regarding stagnant labor productivity despite continued strength in the labor market and reiterated that wage growth and consumer price inflation remains tepid.

The central bankers' speech carried dovish tinge and that seems to have weighed over the Aussie dollar. The AUD/USD was already on the back foot courtesy of the bear flag breakdown and looks even weaker now post-Lowe's dovish comments.

At press time, AUD/USD is trading at 0.7563.

AUD/USD Technical Levels

Resistance: 0.7584 (resistance on hourly chart), 0.7602 (50-hour MA + 10-day MA), and 0.7624 (previous day's high).

Support: 0.7561 (June 8 low), 0.7544 (38.2% Fib R of May-June rally), 0.7513 (61.8% Fib R of May-June rally).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H	Bullish	Oversold	Expanding
4H	Bearish	Neutral	Shrinking
1D	Bullish	Neutral	High
1W	Bearish	Neutral	Shrinking
Updated Jun 13, 03:30 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.

AUD/USD looks firm; focus is on 0.7000

AUD/USD starts the week on a positive footing, approaching the 0.7000 hurdle helped by renewed sentiment following firmer-than-expected GDP data from China. Meanwhile, the continuation of the pair’s recovery also comes in contrast with the decent advance in the Greenback, which regains some traction followong last weeks pullback.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

XRP struggles at support as ETF outflows and bearish momentum cloud recovery outlook

Ripple (XRP) holds slightly above $1.30 on Monday, with short-term recovery prospects fading. Strong structural resistance toward $1.40 continues to cap upside, raising the risk of further downside below $1.30.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.