AUD/USD hits three-week low on rising calls for RBA rate cut

The currency pair has hit three weeks and could slide further, having charted a lower high earlier this month.
AUD/USD is falling fast on growing prospects of RBA rate cut.

Omkar Godbole FXStreet Contributor

The AUD/USD pair is currently trading at 0.7076; a level last seen on Jan. 4; having carved out a bearish-lower high above 0.72 over the last 10 ten days.

The currency pair fell 0.68 percent yesterday - its biggest single-day drop since Jan. 2 - as an out-of-cycle mortgage rate hike by the National Bank of Australia (NAB) boosted prospects of an RBA rate cut.

Cash rate futures now put the odds of a 25 basis point decrease in the cash rate by November this year as a two-in-three chance, according to Business Insider.

The market narrative is that the hike in variable interest rate mortgages will likely accentuate the housing market slowdown and force the RBA to cut rates.

No wonder, the Australian currency is feeling the pull of gravity. The sell-off could gain further traction if the US-China trade optimism fades. The AUD could see a deeper drop against Sterling as Brexit optimism is boding well for the British currency.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7084
    Today Daily change: -9 pips
    Today Daily change %: -0.13%
    Today Daily Open: 0.7093
Trends:
    Daily SMA20: 0.7128
    Daily SMA50: 0.7175
    Daily SMA100: 0.7169
    Daily SMA200: 0.7304
Levels:
    Previous Daily High: 0.7167
    Previous Daily Low: 0.708
    Previous Weekly High: 0.7226
    Previous Weekly Low: 0.7146
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Daily Fibonacci 38.2%: 0.7113
    Daily Fibonacci 61.8%: 0.7134
    Daily Pivot Point S1: 0.706
    Daily Pivot Point S2: 0.7026
    Daily Pivot Point S3: 0.6973
    Daily Pivot Point R1: 0.7147
    Daily Pivot Point R2: 0.72
    Daily Pivot Point R3: 0.7234

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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