AUD/USD falls to session lows near 0.6880 after Lowe’s speech
Price has now fallen below the 100-hour MA (red line) and that has seen sellers establish a more bearish near-term bias in the pair once again. As the pair trades at session lows now, sellers will be aiming towards last week’s low of 0.6865 as the next key near-term target in the sessions to follow.
As long as there is the lingering thought that the RBA is likely to cut rates at their 4 June meeting, it’ll be extremely tough for the aussie to pull off any sustainable rallies in the build up towards the meeting.
As such, I would still expect the aussie to be pressured but a further drop below 0.6800 may be tough unless markets start viewing that a RBA rate cut is a done deal – which is difficult to really see given that Lowe’s language earlier isn’t exactly incontrovertible.
Looking at the bigger picture, there is key support from the January 2016 lows around 0.6827-40 and I would expect that to be a place buyers will lean on and for sellers to take some money off before angling for a further move lower.