AUD/USD hits 20-day low on NAB's mortgage rate hike

AUD hit a 20-day low soon before press time, having hit a high of 0.7167 earlier today.
NAB's mortgage rate hike has strengthened the case for a cut in official rates.

Omkar Godbole FXStreet Contributor

The Aussie dollar is being offered as a mortgage rate hike by a major Australian bank is seen accentuating the housing market slowdown and force the RBA to cut rates.

As of writing, the AUD/USD pair is trading at 0.7112, having clocked a low of 0.7107 - a level last seen on Jan. 4 - soon before press time.

The Australian currency ran into offers near 0.7150 earlier today after the National Bank of Australia announced that from next Thursday it will raise its standard variable rate for owner-occupiers repaying principal and interest by 0.12 percentage points to 5.36 percent.

The move comes months after Commonwealth Bank, Westpac, and ANZ imposed out-of-cycle hikes.

Looking ahead, the pair may find acceptance below 0.71 on rising odds of RBA rate cut. Potential risk aversion in equities would only add to the bearish pressures around the AUD.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.711
    Today Daily change: 32 pips
    Today Daily change %: -0.45%
    Today Daily Open: 0.7142
Trends:
    Daily SMA20: 0.7125
    Daily SMA50: 0.7179
    Daily SMA100: 0.717
    Daily SMA200: 0.7308
Levels:
    Previous Daily High: 0.7145
    Previous Daily Low: 0.7116
    Previous Weekly High: 0.7226
    Previous Weekly Low: 0.7146
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Daily Fibonacci 38.2%: 0.7134
    Daily Fibonacci 61.8%: 0.7127
    Daily Pivot Point S1: 0.7124
    Daily Pivot Point S2: 0.7105
    Daily Pivot Point S3: 0.7095
    Daily Pivot Point R1: 0.7153
    Daily Pivot Point R2: 0.7163
    Daily Pivot Point R3: 0.7182

Author

Omkar Godbole

FXStreet Contributor

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

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