AUD/USD is hit by the RBA
AUD/USD slid by more than 70 pips today as the minutes of the Reserve Bank of Australia’s policy meeting on June 4 showed the bank was open to further lowering its benchmark interest rate. This wasn’t actually much of the news and Aussie’s reaction demonstrates how vulnerable AUD is.
Aussie failed yesterday to hold around 23.6% Fibo of the decline from April around $0.9620 and didn’t manage to close the week’s opening gap at $0.9590.
AUD/USD is approaching support in the $0.9430/00 area and at $0.9325 (last week’s low). Below $0.9320 MIG Bank targets $0.9272/0.8820/0.8332.
Resistance lies at $0.9560/65/75, $0.9620 and $0.9670. In the medium term the outlook will remain bearish as long as AUD/USD is trading below $0.9842 (May 21 high).
Chart. Daily AUD/USD