AUD/USD slips below 0.6700 as RBA minutes keep a dovish bias
- AUD/USD weakens amid increasing calls of further RBA rate cuts.
- Coronavirus fears continue to please the pair sellers despite the receding pace.
- All eyes on US traders’ return, Aussie Wage Price Index for now and China news for now.
AUD/USD declines to 0.6700, with the recent low of 0.6697, following the release of RBA minutes during Tuesday’s Asian session. The minutes statement reiterated the policymakers’ readiness to ease the policy if needed.
Read: RBA Minutes: Board prepared to ease policy if needed
Traders were anticipating hawkish signals considering the rate statement’s upbeat comments, followed by the RBA Governor Philip Lowe’s optimism that the Aussie economy can overcome the coronavirus impact.
Despite witnessing a receding pace of coronavirus infections/deaths, considering the numbers from the epicenter Hubei, fears of the deadly virus to weigh on the global economy remain on the cards.
Read: Coronavirus peaking? How will it impact the Chinese & wider economies and FX?
With this, the market’s risk-tone remains a bit under pressure with the US 10-year treasury yields declining nearly two basis points to 1.57% whereas S&P 500 Futures also weaken 0.20% to 3.375 by the press time.
Looking forward, traders will now keep eyes on the return of the US traders from the extended weekend to observe how they react to the latest coronavirus updates. On the economic calendar, Empire State Manufacturing Index, expect 5.0 versus 4.8 prior, as well as Australia’s fourth quarter (Q4) 2019 Wage Price Index can entertain traders ahead of Thursday’s key Aussie employment data.
Technical Analysis
AUD/USD pair is less likely to avoid revisiting 0.6680/75 multiple support area unless breaking a seven-week-old falling trend line and 21-day SMA, respectively near 0.6725 and 0.6752.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
