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FxWirePro: RBA minutes released, AUD/USD slumps despite no hint of August easing

  • RBA earlier today released minutes of the July RBA meeting when interest rates were held unchanged at 1.75%.
     
  • Minutes highlighted the central bank policy is not on a preset course and reiterated the data dependency of the central bank. 
     
  • The Aussie extended slump post minutes to hit the lowest since July 8 even though the RBA did not provide any hint of August easing. 
     
  • AUD/USD hit new 10-day low of 0.7509 before recovering slightly to currently trade at 0.7522 levels.
     
  • Technically indicators have turned bearish. RSI points south and Stochs have rolled over from overbought zone.
     
  • The pair has broken below 23.6% Fib of 0.7145 to 0.7676 rally at 0.7550, and is currently holding above 20-DMA at 0.7516.
     
  • Below 20-DMA next support lies at 0.7473 (38.2% Fib of 0.7145 to 0.7676 rally), break below would signal bullish invalidation and lead to long unwind.
     
  • Downside could then test 0.7300 (June 24 lows).
     
  • On the flipside resistance aligns at 0.7595 (channel base), close above would invalidate bearish bias.

Recommendation: Go short on rallies around 0.7535/40, SL: 0.7565, TP: 0.75/ 0.7475/ 0.74
 

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