AUD/USD extends post-RBA losses
Australian dollar depreciated to $1.0170 following an unexpected rate from RBA. AUD/USD dropped by 140 pips since Monday opening.
Fundamental picture worsened as the regulator has not only cut rates, but also showed the readiness to ease further. From the technical viewpoint, a break below the $1.0230/00 (100-week EMA, recent lows) level was a strong bearish sign.
We will stay bearish as long as the pair is trading below $1.0200. We recommend using any short-term bullish correction as a selling opportunity. Break below $1.0115 would open the way to parity. Only a clear fix above $1.0220 could improve the prospects of the Aussie.
Chart. Daily AUD/USD