Dovish RBA and fresh risk aversion push Aussie lower
The Australian dollar fell on Tuesday after RBA minutes of the first policy meeting in 2020 showed that RBA reviewed the case of rate cut in February after stayed on hold in January.
Fresh risk aversion amid fall in global stocks also pressured the currency.
The pair fell nearly 0.5% in Asia / early Europe and fresh bearish acceleration signaled and end of corrective phase 76.4% of 0.6662/0.6749 corrective upleg has been retraced so far.
Eventual return below 10DMA which held the action in past four days, brought daily MA’s into full bearish setup, with rising negative momentum and south-heading stochastic / RSI indicators, adding to bearish outlook.
Key support at 0.6662 (7 Feb) the lowest since March 2009 is in focus, with break here to open way towards 0.63 zone (0.6339 (Sep 2003 low / 0.6261 Fibo 76.4% of 0.4773/1.1079, 2001/2011 ascend).
Asian hourly lower platform at 0.6694 offers initial resistance, followed by falling 10DMA (0.6710) which is expected to cap and maintain bearish bias.
Res: 0.6697; 0.6710; 0.6716; 0.6729
Sup: 0.6662; 0.6628; 0.6608; 0.6574