AUDUSD trades 0.19% higher at 0.6756, continuing for third day the rebound from 10-year lows getting a hand from disappointing US ISM Manufacturing data. The pair hit 10-year lows after the RBA cut interest rates by 25 basis points to 0.75% last week. 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 is bearish (AUDUSD at 10-Year Lows, Bears in Control) after the pair breached below the August consolidation area (yellow rectangular) while continues to trade below all daily moving averages. On the upside now first resistance stands at 0.6758 today’s high and then at 0.6785 the 50-day moving average while next hurdle stands at 0.6871 the 100-day moving average. On the downside, first support for AUDUSD stands at 0.6738 today’s low, while more bids will emerge at 0.6701 the low from yesterday’s session. All in all the bears are in control of AUDUSD and the downtrend might accelerate as long as the pair trades below 0.68.Download our latest quarterly market outlookfor our longer-term trade ideas.
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