FxWirePro: AUD/USD attempts recovery, Aussie shrugs off dovish RBA SoMP, focus on US-China trade negotiations

AUD/USD chart - Trading View 

• The Aussie shrugs-off the RBA SoMP, edges higher as markets eye US-China trade negotiations. 
   
• The Reserve Bank of Australia (RBA), in its latest Statement of Monetary Policy (SoMP), downgraded Australia's growth and inflation outlook. 
   
• The central bank has cut June 2019 GDP forecast by 0.75 percentage points to 1.75%. The economy is seen expanding by 2.75% in Dec 2019 and Dec 2020.
   
• Further, the trimmed mean inflation is seen rising by 1.5% in June 2019 and 1.75% in Dec 2019. The inflation is seen ticking higher to 2% in Dec 2020 and June 2021. 
   
• Aussie seemed to largely ignore dovish RBA forecasts and edged higher to 0.7018.
   
• However, price action is slipping lower as we write. The major trades at 0.6992 at 04:45 GMT.
   
• Series of stiff resistance seen on intraday charts. Technical bias remains bearish. Scope for test of 61.8% Fib at 0.6955 and the 0.69.
   
• 21-EMA is strong resistance at 0.7043. Bearish invalidation only above 200-DMA.

Support levels - 0.6954 (61.8% Fib), 0.69 (psychlogical level)

Resistance levels - 0.70, 0.7043 (21-EMA), 0.7082 (50-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.