18 Aug 2015
AUD/USD extends the drop near 0.7340
FXStreet (Mumbai) - The Australian dollar was relentlessly sold-off against its American counterpart in the European session, knocking-off AUD/USD to a new four-day low near 0.73 handle, as markets contemplate on Sept Fed rate hike in light of RBA minutes released early today.
AUD/USD drops from 0.7365 levels
Currently, the AUD/USD pair trades -0.34% lower at 0.7347, having posted a high at 0.7386 and a low at 0.7332. The AUD/USD pair accelerates losses and eyes 0.73 barrier as markets digest the latest RBA minutes published in early Asia which revealed that that the US dollar could appreciate higher against the Aussie when the Federal Reserve (Fed) increases rates.
Analysts at Rabobank explained, "The RBA’s August minutes showed it is still only a grudgingly participant in FX combat and is waiting for data to turn south and/or the Fed to hike to give it the courage to pull the rates trigger again."
Amid lack of AUD macro data in the week ahead, traders will continue to closely watch crucial US economic releases including Wednesday’s CPI and FOMC minutes for further momentum on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7321 (Aug 13 Low) levels from here it to 0.7300.
AUD/USD drops from 0.7365 levels
Currently, the AUD/USD pair trades -0.34% lower at 0.7347, having posted a high at 0.7386 and a low at 0.7332. The AUD/USD pair accelerates losses and eyes 0.73 barrier as markets digest the latest RBA minutes published in early Asia which revealed that that the US dollar could appreciate higher against the Aussie when the Federal Reserve (Fed) increases rates.
Analysts at Rabobank explained, "The RBA’s August minutes showed it is still only a grudgingly participant in FX combat and is waiting for data to turn south and/or the Fed to hike to give it the courage to pull the rates trigger again."
Amid lack of AUD macro data in the week ahead, traders will continue to closely watch crucial US economic releases including Wednesday’s CPI and FOMC minutes for further momentum on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7321 (Aug 13 Low) levels from here it to 0.7300.