AUD/USD slips to three-week lows on aggressive RBA rate cut calls


  • AUD/USD drops to lowest since May 24.
  • RBA to cut rates to 0.75% this year, according to NAB.
  • The aggressive rate cut forecasts are likely hurting the Aussie Dollar.

Australian Dollar is being offered this Friday morning, possibly in response to growing calls for aggressive RBA rate cuts in 2019.

The National Bank of Australia (NAB) has reportedly put out forecasts calling for three rate cuts this year. The bank had predicted two rate cuts earlier this year.

NAB’s forecast comes three weeks after Westpac – one of the big 4 Australian banks – revised its 2019 RBA interest rate cut forecast from two to three.

It is worth noting that up until now markets were priced in for two rate cuts. With growing calls for aggressive easing, the markets may begin pricing the possibility of RBA reducing rates to 0.75% by December,  keeping the AUD under pressure. The Reserve Bank of Australia cut rates by 25 basis points to a new record low of 1.25% earlier this month.

The AUD/USD pair is currently trading at 0.6898, representing 0.24% drop on the day. The pair hit a low of 0.6892 soon before press time – a level last seen on May 24.

Aussie may trim losses during the day ahead if China’s retail sales and industrial production numbers for May blow past expectations.

Technical Levels

AUD/USD

Overview
Today last price 0.6898
Today Daily Change -0.0020
Today Daily Change % -0.29
Today daily open 0.6916
 
Trends
Daily SMA20 0.6932
Daily SMA50 0.7009
Daily SMA100 0.7064
Daily SMA200 0.7117
Levels
Previous Daily High 0.6939
Previous Daily Low 0.6901
Previous Weekly High 0.7022
Previous Weekly Low 0.6927
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6915
Daily Fibonacci 61.8% 0.6924
Daily Pivot Point S1 0.6898
Daily Pivot Point S2 0.688
Daily Pivot Point S3 0.686
Daily Pivot Point R1 0.6936
Daily Pivot Point R2 0.6957
Daily Pivot Point R3 0.6974

 

 

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