The Aussie racks up another day of losses as the US Dollar continues to climb.
RBA rate meeting up next, dovish statement on the cards.
The AUD/USD is trading near the bottom heading into Tuesday’s markets, sticking to 0.7530.
The Aussie geared up to begin staging a recovery on Friday. but got slapped back down in Monday’s trading, extending April’s decline into new four-month lows.
AUD/USD analysis: RBA monetary policy meeting coming up next
The AUD will be seeing the AiG Manufacturing Index at 23:30 GMT Monday (prev. 63.1) before the Reserve Bank of Australia’s (RBA) latest Rate Statement at 04:30 GMT Tuesday. The RBA is already projected to remain stuck on interest rates well into 2019, but traders will be looking to see just how much the central bank will be lowering their forward-looking growth expectations.
A weakening Aussie has been the general theme amidst souring economic data and a widening interest rate differential, with many expecting the AUD to continue dropping against the Greenback into the lower 0.70s.
AUD/USD levels to watch
FXStreet’s Chief Analyst Valeria Bednarik on the Aussie’s near-term outlook: “latest data coming from the country has been soft, which suggest that if there’s going to be a change in the wording, it would be to the dovish side, and could result in the pair piercing the 0.7500 threshold. Technically, the pair is bearish, given that in the 4 hours chart, the pair keeps developing below a bearish 20 SMA, while the RSI indicator extended its decline down to 31, although the Momentum retains a neutral stance.”
Support levels: 0.7500 0.7470 0.7430
Resistance levels: 0.7550 0.7590 0.7620
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