AUDUSD trades 0.34% lower at 0.6681, making fresh 10-year lows as the pair cancels the short-lived rebound after yesterday’s worse-than-expected US ISM Manufacturing data. The pair today resumes the downtrend which started after the RBA cut interest rates by 25 basis points to 0.75%. The dovish stance pressures Aussie to 10-year lows. RBA left the doors open for further cuts in the future as the Australian economy is at “a gentle turning point”. Reserve Bank of Australia may cut further to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’.
AUDUSD slumped to 0.6670 (10-year lows) during the European session as sellers are in control. The technical outlook is bearish (AUDUSD Bears in Control Below 0.68) after the pair broke below the August consolidation area (yellow rectangular). On the downside, first support for AUDUSD stands at 0.6670 today’s low, while more bids will emerge at 0.6550 the low from March 2009. On the upside, first resistance stands at 0.6718 today’s high and then at 0.6792 the 50-day moving average while next hurdle stands at 0.6876 the 100-day moving average. All in all the bears are in control of AUDUSD and the downtrend might accelerate as long as the pair trades below 0.67.Download our latest quarterly market outlookfor our longer-term trade ideas.
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