AUDUSD trades 0.28% lower for third consecutive trading session at 0.6733, as the pair failed to break above the descending trendline which strated back in July 2019. Investors turn cautious on phase one of the trade deal between US and China. AUD is still under the bearish influence of the interest rate cut by RBA. AUDUSD hit 10-year lows after the Reserve Bank of Australia cut interest rates by 25 basis points to 0.75%. 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 might cut to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’.
AUDUSD technical outlook has turned bearish for the short term as the rebound from 10-year lows stopped at 0.6810. The pair trades below all daily moving averages. On the downside, first support for AUDUSD stands at 0.6725 today’s low, while more bids will emerge at 0.6701 the low from October 3rd session. A break below will open the way for a visit down to 10-year lows. On the upside now first resistance stands at 0.6754 today’s high and then at 0.6776 the 50-day moving average while next hurdle stands at 0.6859 the 100-day moving average. Bulls need a break above the 50-day moving average to cancel the recent downtrend.Download our latest quarterly market outlookfor our longer-term trade ideas.
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