AUD/USD has posted considerable losses in the Tuesday session. In North American trade, the pair is trading at 0.7095, down 0.56% on the day. The Aussie has slipped close to 1.0 percent this week, and is currently trading at a 3-week low.
On the release front, there were no major events in the U.S. New home sales jumped to 692 thousand, marking a 12-month high. However, Richmond Manufacturing Index fell to 3, down sharply from 10 points a month earlier. In Australia, the CB Leading Index improved to 0.5% in February, after a gain of 0.3% in the January release. CPI is expected to slow to 0.2% in Q1, while Trimmed Mean CPI is projected to remain unchanged at 0.4%.
The RBA has held the course with monetary policy, but that hasn’t removed investor jitters. Earlier this month, rate-setters maintained the benchmark rate at 1.50%, where its has been pegged for 32 months. However, dovish language in the rate statement sent the Aussie lower, as investors remain concerned about the economic outlook. China, which is Australia’s largest trading partner, is mired in a slowdown, and that could spell major trouble for the Australian economy. The markets have priced in a rate cut when the RBA finally makes a move, which could occur later in the year.
•AUD/US posted small losses in the Asian and European sessions. The pair continues to lose ground in North American trade
•0.7085 is under pressure in support after losses by AUD/USD on Tuesday
•There is resistance at 0.7190
•Current range: 0.7085 to 0.7190
AUD/USD ratio is showing short positions with a small majority (53%), indicative of trader bias towards AUD/USD continuing to move to lower ground.
On the release front, there were no major events in the U.S. New home sales jumped to 692 thousand, marking a 12-month high. However, Richmond Manufacturing Index fell to 3, down sharply from 10 points a month earlier. In Australia, the CB Leading Index improved to 0.5% in February, after a gain of 0.3% in the January release. CPI is expected to slow to 0.2% in Q1, while Trimmed Mean CPI is projected to remain unchanged at 0.4%.
The RBA has held the course with monetary policy, but that hasn’t removed investor jitters. Earlier this month, rate-setters maintained the benchmark rate at 1.50%, where its has been pegged for 32 months. However, dovish language in the rate statement sent the Aussie lower, as investors remain concerned about the economic outlook. China, which is Australia’s largest trading partner, is mired in a slowdown, and that could spell major trouble for the Australian economy. The markets have priced in a rate cut when the RBA finally makes a move, which could occur later in the year.
•AUD/US posted small losses in the Asian and European sessions. The pair continues to lose ground in North American trade
•0.7085 is under pressure in support after losses by AUD/USD on Tuesday
•There is resistance at 0.7190
•Current range: 0.7085 to 0.7190
AUD/USD ratio is showing short positions with a small majority (53%), indicative of trader bias towards AUD/USD continuing to move to lower ground.
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