AUD/USD hits fresh lows despite data dependent RBA

Offered tone around AUD persists despite RBA minutes highlighting the central bank policy is not on a preset course and is data dependent.

The AUD/USD pair saw a minor recovery to 0.7560 immediately after the minutes were released, only to drop to fresh daily low of 0.7519 levels.

Drops to 11-day low

The spot hit the lowest since July 8 even though the RBA did not provide any hint of August easing. Aussie is being offered since early Asia on speculation the central bank minutes may build ground for August move.

However, minutes only reiterated the data dependency of the central bank. Consequently, the slide from post minutes high of 0.7560 to 0.7519 is slightly surprising.

AUD/USD Technical Levels

A breakdown of immediate support at 0.7490 (50% of 0.7835-0.7145 + 100-DMA) could yield 0.7450 (38.2% of 0.6827-0.7835 + rising trend line support on daily). A violation there would signal bullish invalidation and lead to long unwind; taking the spot lower to 0.7300 (June 24 lows). On the higher side, 0.7571 (61.8% of 0.7835-0.7145) if breached could yield a re-test of 0.76, above which the spot may target 0.7676 (Friday’s high).