AUD/USD: outlook for July 25-31
Australian dollar declined on the expectations that the Reserve bank of Australia will cut interest rate at the next meeting in August. The minutes of the RBA’s July meeting showed that the central bank thinks that the nation’s economic growth may have declined in Q2, while inflation remains weak.
The most important piece of information ahead of the RBA meeting will be the release of Australian Q2 inflation figures on Wednesday: the data will either strengthen the case for lower rates or make the market reprice the odds of a rate cut.
AUD/USD is trading just above 0.7450 – this is a support line connecting May and June lows. Below this point support is at 0.7400 and 0.7350. Resistance is at 0.7500 and 0.7550.