AUD/USD (current price: 0.7305)
The Australian Dollar is sharply lower against the USD today in early trading following yesterday’s intraday reversal. The currency has been hit hard by last the recent surprise rate cut by the RBA, and it’s been trending lower ever since. AUD/USD is close to hitting the 200-day MA near 0.7250 after trading as high as 0.78 just two weeks ago. The currency hit a new low this morning, as it fell below the 0.73 level that has been acting as support this week.
Our assessment: The pair is likely to test the 200-day MA as the recent decline already pushed AUD/USD down by more than 500 pips. The 0.7250 level is also close to a previous support/resistance zone, so a rebound is possible next week.
