The Decline in the AUD/USD is Gathering Steam
Rowan Crosby • 1 min read
The USD has survived the FOMC Minutes and is now seeing a bit of strength. That’s bad news for the majors as they are also weakening against the Greenback.
One of the big losers has been the Aussie. We are now sitting around the 0.7800 mark and things continue to look weak.
The USD has been the main driver of the move lower and now it appears that there might even be more rate rises on the agenda for the US. The Aussie economy simply can’t keep pace and we are likely to see further depreciation in the months ahead as the rumoured hikes become reality.
As I’ve previously mentioned I feel that 0.7650 is the first major level that will halt the slide in the AUD. IT has been a big level previously and it also ticks a few boxes fundamentally.
The RBA has repeatedly said that an 80 cent AUD is simply too high and will hurt the economy. They will be doing all they can to push it towards 70 cents. However, for now, they will be happy with something in the 75-76.5 range.
Support at 0.7768 is the major level that will support us prior to that. I’ll be looking for a break of 0.7800 firstly and then I’ll short into 0.7768.
AUD/USD – 240 min Chart.