AUD/USD struggles near multi-month lows, below mid-0.6800s


  • The RBA minutes showed consensus over further monetary easing and weighed on the Aussie.
  • A subdued USD demand extended some support and helped limit deeper losses, at least for now.
  • Investors now look forward to the US housing market data for some short-term trading impetus.

The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band below mid-0.6800s, or 5-1/2 month lows.

The pair extended its recent pullback from levels beyond the key 0.70 psychological mark and remained under some selling pressure for the fifth consecutive session, also marking its sixth day of a negative move in the previous seven.

Tuesday's slide during the Asian session came after minutes of the latest RBA monetary policy meeting held on June 4 showed policymakers saying that further monetary easing was more likely in the coming month.

The explicit signal for yet another interest rate cut, coupled with fears of a further escalation in the US-China trade tensions further dented the already weaker sentiment surrounding the China-proxy Australian Dollar.

The bearish pressure now seems to have receded, at least for the time being, amid a mildly softer tone surrounding the US Dollar, which was slightly undermined by Monday's dismal Empire State Manufacturing Index.

In fact, manufacturing activity in the New York region posted a record drop in June and fell into contraction territory for the first time in more than two years, also marking its weakest level since October 2016.

Investors might also be reluctant to place any aggressive bets ahead of the next big event risk - the latest FOMC monetary policy update on Wednesday, which might further collaborate towards helping limit deeper losses. 

Tuesday's US economic docket features the release of housing market data - housing starts and building permits, which will be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6839
Today Daily Change -0.0013
Today Daily Change % -0.19
Today daily open 0.6852
 
Trends
Daily SMA20 0.693
Daily SMA50 0.6998
Daily SMA100 0.7058
Daily SMA200 0.7114
Levels
Previous Daily High 0.6885
Previous Daily Low 0.6848
Previous Weekly High 0.7009
Previous Weekly Low 0.6861
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6862
Daily Fibonacci 61.8% 0.6871
Daily Pivot Point S1 0.6838
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.6801
Daily Pivot Point R1 0.6875
Daily Pivot Point R2 0.6899
Daily Pivot Point R3 0.6912

 

 

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