17 Mar 2015
AUD/USD keeps losses around 0.7630, RBA minutes weigh
FXStreet (Mumbai) - AUD/USD remained weak in the early European morning, extending losses from the Asian session after RBA March meeting minutes revealed that the central bank remained wary on the level of exchange rate and over Australia’s grim economic outlook.
AUD/USD capped by 0.7629
Currently, the AUD/USD trades lower by -0.14% at 0.7630 levels, having previously posted day’s high at 0.7643 and day’s low at 0.7613. The Aussie was slightly offered this morning as traders continue to digest the minutes from the Reserve Bank of Australia’s (RBA) March meeting which suggested that the AUD was still overvalued, and that more monetary easing was very much on the cards.
Minutes stated, "Although the Australian dollar had depreciated, particularly against the US dollar, it remained above most estimates of its fundamental value, particularly given the significant declines in key commodity prices,"
"on the basis of the current forecasts for growth and inflation, members were of the view that a case to ease monetary policy further might emerge,"
In the day ahead, AUD/USD is likely to remain pressured before the release of crucial US housing data which may provide further dollar moves.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7643 (Today’s High) levels, above which gains could be extended to 0.7681 (March 16 High) levels. On the flip side, support is seen at 0.7600 levels from here it to 0.7570 (March 12 Low) levels.
AUD/USD capped by 0.7629
Currently, the AUD/USD trades lower by -0.14% at 0.7630 levels, having previously posted day’s high at 0.7643 and day’s low at 0.7613. The Aussie was slightly offered this morning as traders continue to digest the minutes from the Reserve Bank of Australia’s (RBA) March meeting which suggested that the AUD was still overvalued, and that more monetary easing was very much on the cards.
Minutes stated, "Although the Australian dollar had depreciated, particularly against the US dollar, it remained above most estimates of its fundamental value, particularly given the significant declines in key commodity prices,"
"on the basis of the current forecasts for growth and inflation, members were of the view that a case to ease monetary policy further might emerge,"
In the day ahead, AUD/USD is likely to remain pressured before the release of crucial US housing data which may provide further dollar moves.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7643 (Today’s High) levels, above which gains could be extended to 0.7681 (March 16 High) levels. On the flip side, support is seen at 0.7600 levels from here it to 0.7570 (March 12 Low) levels.