AUDUSD continues south for 14 straight trading sessions giving up 0.53 percent at 0.6724, after neighbor New Zealand’s central bank cut aggressively the OCR by 50bp to 1.00%, while the market forecasting a 25bp cut. The Reserve Bank of Australia kept interest rate unchanged yesterday at 1.00% at a record low as widely expected by markets. Australia Home Loans came in at -0.9%, below forecasts of 0.6% in June. Investment Lending for Homes came in at 0.5% for June vs -1.7%.
AUDUSD managed to rebound from the 10 year lows at 0.6676 above 0.67. Bears are in full control, on the downside first support now stands at 0.6676 today’s low, a level that if breached will enhance the slide toward the 0.66 round figure. On the upside immediate resistance stands at 0.6762 the 50 hour moving average while more offers will emerge at 0.6785 the 100 hour moving average. The short term momentum for AUDUSD remains bearish for now and a move to lower levels looks possible; The pair have reached oversold levels as implied by the RSI in the daily chart which stands at 23.73, so a sharp rebound can’t be ruled out.