AUDUSD trades 0.70% lower at 0.6702, making fresh monthly lows after RBA cut interest rates by 25 basis points to 0.75% as widely expected by markets. 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’.
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AUDUSD spiked higher after the decision at daily high, but soon sellers took control driving the price down to monthly lows. The technical outlook is bearish (AUDUSD Bears in Control Below 0.68) as the pair breaks below the August consolidation area (yellow rectangular). On the downside, first support for AUDUSD stands at 0.6699 today’s low, while more bids will emerge at 0.6687 the low from September 3rd; A break below that level will open the way for a visit down to 0.6676 the low from August 7th. On the upside now first resistance stands at 0.6776 today’s high and then at 0.6798 the 50-day moving average while next hurdle stands at 0.6876 the 100-day moving average. All in all the bears are in control of AUDUSD as long as the pair trades below 0.6750.