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AUD/USD softer below 0.7100, RBA eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Aussie dollar is retreating vs. the greenback on Monday, taking AUD/USD to the 0.7070/65 band so far.

    AUD/USD focus on RBA

    The pair is retreating from recent 3-week highs in the mid-0.7100s and it is so far snapping a 2-week positive streak ahead of the RBA interest rate decision due tomorrow.

    Market expectations of a rate cut by the RBA remains nearly zero, especially after today’s inflation figures gauged by TD. As noted by Preshant Newnaha, Strategist at TD Securities, “We note the jump in monthly and annual tradable inflation, confirmation that the weaker exchange rate is feeding through, just as the RBA expected”.

    AUD/USD relevant levels

    As of writing the pair is down 0.20% at 0.7064 and a breach of 0.6916 (low Jan.26) would aim for 0.6873 (low Jan.21) and finally 0.6825 (low Jan.20). On the other hand, the next hurdle aligns at 0.7143 (high Jan.29.) followed by 0.7332 (high Dec.31) and then 0.7336 (200-day sma).
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