- RBA minutes dampen the Aussie, cautious tone of the minutes added to the bearish tone in AUD/USD.
- The pair extends losses to hit fresh session lows of 0.7555. Downside is holding strong support by 200-DMA at 0.7555.
- RBA minutes released this Tuesday morning took note of the rising household debt and weakness in consumption and labor market.
- Minutes reiterated the dangers of a strong Aussie dollar and talked about a slow pick in the core inflation.
- The pair on Monday failed to hold gains above 20-DMA and slipped lower from highs of 0.7610 to close below 0.76 handle.
- We see further weakness on break below 200-DMA. Test of trendline at 0.7475 then likely.
Support levels - 0.7555 (200-DMA), 0.7524 (38.2% Fib retrace of 0.7160 to 0.7749 rally), 0.7474 (April 11 low)
Resistance levels - 0.7585 (20-DMA), 0.76, 0.7610 (23.6% Fib), 0.7621 (50-DMA)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Neutral Neutral
1W Bearish Neutral
Recommendation: Good to go short on break below 200-DMA at 0.7555, SL: 0.7610, TP: 0.7525/ 0.75/ 0.7475
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -99.4225 (Bearish), while Hourly USD Spot Index was at -33.9351 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
