FxWirePro: AUD/USD extends break below daily cloud, weakness seen despite hawkish RBA bets

Chart - Courtesy Trading View 

AUD/USD was trading 0.05% lower on the day at 0.6782 at around 05:30 GMT, bias is bearish.

The pair is extending weakness below daily cloud, slips lower from session highs at 0.6800.

The aussie bulls have failed to find support despite the soaring bets over the ‘hawkish’ stance by the Reserve Bank of Australia (RBA). 

Markets price in a restrictive measure by the Reserve Bank of Australia at its monetary policy meet next week.

RBA Governor Philip Lowe is expected to keep up the pace of hiking interest rates as price pressures in the Australia show no sign of exhaustion yet.

Policymakers are expected to advocate one more 50 bps rate hike, likely elevating the OCR to 2.35%.

The major remains rangebound as investors remain on the sidelines ahead of the key US Non-Farm-Payrolls data.

Support levels - 0.6749 (Lower BB), 0.67

Resistance levels - 0.6831 (5-DMA), 0.6900 (21-EMA)

Summary: AUD/USD poised for further downside. Break below cloud has opened downside. Bearish invalidation only above daily cloud.