AUD/USD Forecast: Bears gaining confidence

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6295

RBA Meeting Minutes showed that policymakers would continue to step in to support the economy.
Risk-aversion weighed on the Aussie, also dragged lower by plummeting equities.
AUD/USD turning lower, the decline could accelerate once below 0.6250.

The AUD/USD pair is ending Tuesday just below the 0.6300 figure, recovering from a daily low of 0.6252. The Aussie was undermined by the prevalent risk-off mood but was also affected by RBA’s Governor Lowe speech, as his message was much less optimistic than anticipated.

The central bank released the Minutes of its latest meeting, and the document showed that policymakers agreed to continue to adjust bond and repo operations as required to support the economy, as the “next few months are going to be difficult ones for the Australian economy.” He added that current record-low rates would likely remain for a very long period of time. During the upcoming Asian session, Westpac will release its March Leading Index, previously at -0.42%.

AUD/USD short-term technical outlook

The AUD/USD pair is gaining bearish potential, as, in the 4-hour chart, it has spent the day below a now flat 20 SMA, although holding above its 100 and 200 SMA. The Momentum indicator turned lower just below its mid-line, although it lacks enough strength to confirm further declines. The RSI, in the meantime, hovers around 43, also skewing the risk to the downside.

Support levels: 0.6250 0.6210 0.6170

Resistance levels: 0.6330 0.6375 0.6400

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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