AUDUSD continues the consolidation phase to three-week lows after the correction from 2-month highs despite the positive news from the US-China trade tensions front, and after the RBNZ hold interest rates unchanged at 1%. The recent RBA meeting kept the door open for future interest rate cuts following the two consecutive cuts in June and July this year. Economists expect a 25 bps cut in the next meeting as the possible scenario.
AUDUSD trades 0.31% lower at 0.6780 after a strong start in the Asian session which send the pair up to 0.6803 above the 50% Fibonacci retracement. The short term technical outlook is bearish as the pair returns inside the consolidation area (yellow rectangular). On the downside, first support for AUDUSD stands at 0.6776 today’s low, while more bids will emerge at 0.6738 the lower band of the August consolidation area (yellow rectangular in the chart), which if breached will open the way for a visit down to 0.6688 the low from August 26th. On the upside now first resistance stands at 0.6803 today’s high and then at 0.6823 the 50-day moving average while next hurdle stands at 0.6886 the 100-day moving average.