Dovish RBA Hits the AUD/USD – Bearish Setup in Play
Arslan Butt • 1 min read
The AUD/USD currency pair hit the bearish track representing 0.18% losses today, ahead of RBA meeting keeping its easing bias. By the way, the pair is currently trading at 0.6852, while earlier today the pair had hit a high of 06870.
A buying trend in the Australian Dollar sent AUD/USD lower to the fifty-day moving average support of 0.6849 due to the September meeting of Reserve Bank of Australia, where the board said that it will examine more rate cuts if needed to support development and inflation targets.
This increased the bearish pressure on the Australian Dollar due to RBA’s take on wage growth. Also, the Australian house price index dropped by 0.7% quarter-on-quarter in the 2nd quarter, as data delivered at 01:30 GMT showed. The market was expecting a decline of 1% after the 3% decline in the 1st quarter.
As yet, the unexpectedly better data has not succeeded to put a buying under the Australian Dollar, due to a dovish comment on wages from the Reserve Bank of Australia. Therefore, the bank is expected to deliver the rate cut during the upcoming months, probably in November or February.
Daily Support and Resistance
Pivot Point 0.6868
Consider taking sell positions below 0.6850 with an immediate target of 0.6822 today.