AUD/USD Continues Sliding Lower After RBA Minutes

thecekodok

 The Australian dollar continued to depreciate continuously in early trading this week following market sentiment which was seen as still risky.


The focus of this morning’s (Tuesday) Asian session was on investor -focused minutes of the Australian central bank meeting.


After the Reserve Bank of Australia (RBA) kept interest rates unchanged at its most recent policy meeting, attention was drawn to a statement by Governor Philip Lowe that was seen as hawkish with a signal for an interest rate hike to take place this year.


Even so, the Aussie dollar did not respond positively following the minutes report, and continued to move weakly until the end of the Asian session.


Examining the price movement on the chart of the AUD/USD currency pair, the price has made a decline above the level of 0.72000 in the New York session yesterday with a daily decline of around 100 pips recorded.


Trading in the Asian session this morning saw the price continue to decline and test the support level around 0.71800.


The pressure will be on the Aussie dollar with expectations for the US dollar to strengthen ahead of the FOMC meeting early Thursday morning, it is likely that interest rates will be raised by the Federal Reserve (Fed).



Therefore, analysts are of the view that the decline in the price will continue until it reaches the support zone again at 0.71000 which has been hit by the price previously on February 24.


A drop to that level will also mark the latest low for a 3 -week trading period.


However if a price increase occurs, the initial resistance seen to be tested by the price is at the level of 0.72300.


The Moving Average 50 (MA50) barrier level on the 1 -hour time frame will also be tested to give a clearer signal of further price movements.


Higher gains past the barrier will re -target up to the 0.74400 high again reached early last week.