AUDUSD consolidates to three week lows after the correction from 2-month highs as the commentary from the recent RBA meeting kept the door open for future interest rate cuts following the two consecutive cuts in June and July this year. Analysts expect a 25 bps cut in the next meeting as the most possible scenario.
AUDUSD trades 0.03% higher at 0.6775 after a strong start in the Asian session which send the pair up to 0.6785 the 50% Fibo retracement. The short term technical outlook is neutral as the pair returns inside the consolidation area (yellow rectangular). On the downside, first support for AUDUSD stands at 0.6764 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 0.6867 the 50-day moving average while next hurdle stands at 0.6888 the 10-day moving average.