The Aussie retreats today from two month high below 0.70 breaking the ninth straight positive sessions amid broad USD strength. AUDUSD hit the high at 0.7035 the previous week in a rally that started after FED opened the door for interest rate cuts before the end of the year. The Chinese Caixin Manufacturing PMI came in at 49.4, below analysts’ forecast of 50 in June.
Traders await tomorrow the RBA decision on interest rates that will drive AUD in the upcoming days. Economist’s have increased bets of a Reserve Bank of Australia interest rate cut in July.
AUDUSD currently is trading close to daily low at 0.6990 in cautious trading ahead of the RBA, without cancelling the short term positive momentum. The pair now will face the important 0.70 resistance and if breached can extend the rebound at 1.7033 the 100 day moving average. On the downside first support stands at 0.6957 the 50 day moving average, while more bids will emerge at 0.6827 the low from June 18th.Don’t miss a beat! Follow us on Twitter.