AUDUSD Retreats as Bears Control the Game
AUDUSD trades 0.21% lower at 0.6753, after three consecutive positive days rebounding from 10-year lows. On the data front, the Australia AiG Performance of Construction Index came in at 42.6 from previous 44.6 to in September. AUDUSD hit 10-year lows after the RBA cut interest rates by 25 basis points to 0.75%. RBA left the doors open for further cuts in the future as the Australian economy is at “a gentle turning point”. Reserve Bank of Australia might cut to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’.
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AUDUSD technical outlook is bearish as the pair continues to trade below all daily moving averages. On the upside now first resistance stands at 0.6764 today’s high and then at 0.6783 the 50-day moving average while next hurdle stands at 0.6870 the 100-day moving average. On the downside, first support for AUDUSD stands at 0.6746 today’s low, while more bids will emerge at 0.6701 the low from October 3rd session. A break below will open the way for a visit down to 10-year lows. All in all the bears are in control of AUDUSD and the downtrend might accelerate as long as the pair trades below 0.68.