AUD/USD: Sold Hard As RBA Hints Prospects of Lower Rates

The technical dynamics in the Aussie have clearly shifted in the last 1h or so after the RBA Governor finally caved in by acknowledging that under the current economic conditions, the interest rate outlook is more evenly balanced, which is a downgrade from his more previous sanguine view. The sell-off has set in motion a bearish momentum move that could easily extend into the next support area circa 0.7145–50 in coming sessions ahead of a 100% projection target at 0.7125–30. What may still keep the emergence of bids at certain intervals in the rampant run in equities, but beware that this is a fundamental-led move that on its own right, even better if supported via DXY strength as seen, can inflict further damage to the Aussie. Any revisit of 0.72 up to 0.7230 offers an opportunity to engage in sell-side action at what one could argue to be the most pristine levels.