RBA minutes aggravate Aussie’s pain, AUD/USD drops to 0.7565

The AUD/USD pair extended losses to a fresh session low of 0.7565 after the RBA minutes released this Tuesday morning took note of the rising household debt and weakness in consumption and labor market.

Strength in the AUD would complicate economic adjustment- RBA

The minutes once again reiterated the dangers of a strong Aussie dollar and talked about a slow pick in the core inflation. The policymakers feel the Chinese economy has strengthened and at the same time see the rise of protectionist forces, especially in the US as a major risk.

The cautious tone of the minutes only added to the bearish tone seen in the Aussie pairs.

Iron ore at 5- month lows

Prior to the RBA minutes release, the Aussie was already on the back foot, given the iron ore prices hit a fresh five-month low. The commodity tumbled 3.7%, to USD 64.60 tonne, according to The Steel Index. Moreover, Australia’s key export has 15% in April alone. Ahead in the day, the focus remains on

AUD/USD Technical Levels

A break below 0.7555 (200-DMA) would signal the end of the corrective rally from the low of 0.7473 (Apr 12 low) and would open doors for a re-test of 0.7525 (100-DMA) and 0.7473 (Apr 12 low). On the higher side, breach of resistance at 0.7620 (50-DMA) could yield a rally to 0.7679 (Mar 30 high) and 0.77 (zero levels).