The AUD/USD has been in focus this week as the RBA decision yesterday has put it in the spotlight. Whilst we didn’t have a change in rates, there was a bullish tone to come out.

The statement was positive on the Australian economy and kept the door ajar for rate rises. I think they are fooling themselves. Relative to the US economy, the Aussie is struggling. US rates will rise in the coming weeks in the US and tax cuts are on the way.

This was reflected in the price action of the AUD/USD during the US session. As you can see it was one big red candle which suggests that no one is buying the RBA’s story.

I spoke about the 0.7640 level yesterday as a possible sell spot. Sure enough, it was on the money. To me, this level is important as it maintains the downtrend. From here I’m looking for more downside which includes a test of 0.7500, possibly around the time of a US rate hike.

AUD/USD – 240 min Chart.