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The AUDUSD moved lower in the late Asian session and continued the run to the downside in the European session.
The pair stalled near the 50% midpoint of the 2022 trading range near 0.71403 (the high reached 0.7150) yesterday, the price spiked up to 0.71677. On Wednesday, the high price reached 0.71588 before coming back down.
Helping the downside today was a break back below the 100 hour moving average at 0.71108 (blue line). That was also near the swing low from yesterday’s trade. The pair also fell below its 200 hour moving average at 0.7096 currently. Stay below those moving averages going forward keeps the sellers more in control. Move above and the buyers start to gain more confidence once again.
On the downside, the next target area comes between 0.7032 and 0.7037. Swing lows from Monday and Tuesday stalled in that area before moving higher.
Taking a broader look at the daily chart, in January, the price moved to the lowest level since July 2020 after breaking below the 2021 low at 0.69921. The 38.2% retracement of the move up from the 2020 low to the 2021 high cuts across at 0.70477. The low price today reached 0.7051. So watch that level for potential support and/or a break below increasing the bearish bias.
In the Asian session, the RBA statement of monetary policy showed that the RBA is staying steady on keeping rates unchanged at least for now:
“The Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve.” (see Eamonn’s post HERE)
Meanwhile, ANZ is seeing the RBA raising rates for the first time in September 2022.