Aussie falls to 1 1/2 month low on stronger greenback, expectations of RBA rate cut
The Australian dollar extends steep fall into fourth straight day (down 2.9% from last Friday’s 0.7334 high) and falls to 1 ½ – month low on Wednesday.
Strong risk aversion continues to deflate Aussie, with additional negative signals seen from expectations that the RBA will cut interest rate from 0.25% to 0.1% in 6 Oct policy meeting.
Today’s acceleration penetrated thick ascending daily cloud (cloud top lays at 0.7155) and dented Fibo support at 0.7095 (50% retracement of 0.6776/ 0.7413), with close below here to open way towards 0.7026/19 (daily cloud base / Fibo 61.8%) and psychological 0.70 support (reinforced by rising 100DMA).
Negative scenario is supported by strong bearish configuration of daily techs, weakening weekly studies and formation of bearish engulfing on weekly chart.
Res: 0.7108; 0.7132; 0.7155; 0.7170
Sup: 0.7076; 0.7063; 0.7026; 0.7000