Aussie remains in red after April’s 5.6% fall; Tuesday’s RBA meeting in focus
The AUDUSD started trading in May in negative mode and extended to new lowest since Jan 2020 in early Monday, despite holiday-thinned Asian markets.
Nears remain fully in play after 5.6% drop in April, the biggest monthly loss since May 2013, as risk sensitive Aussie remains under pressure from risk aversion and strong rise of its US counterpart.
Bearish daily techs support the action for final push towards psychological 0.70 support and another key level at 0.6967 (2022 low, posted on Jan 28, but oversold conditions warn that bulls may face headwinds on approach to these levels.
Traders also focus on tomorrow’s RBA policy meeting, with expectations that the central bank will raise interest rate by 15 basis points to 0.25%, although some economists say that scenario of staying on hold or going for more aggressive 40 basis points hike, wouldn’t be a big surprise.
However, markets will pay more attention to the following RBA’s statement, to get more information on the central bank’s plans about the monetary policy in the near future, with stronger signals about more aggressive approach, to probably lift the Aussie dollar, although rallies should be limited due to overall negative environment.
Res: 0.7089; 0.7131; 0.7179; 0.7205
Sup: 0.7032; 0.7000; 0.6986; 0.6967