AUD/USD meets fresh supply on RBA SoMP, attacks 0.7400

By FXStreet The AUD/USD pair snapped the previous rebound and resumed its recent downtrend, with the bears tightening their grip following the release of RBA’s Statement of Monetary Policy (SoMP).

AUD/USD drops from 0.7470 region post-SoMP

Currently, the AUD/USD pair drops 0.70% to fresh eight-week lows of 0.7413, making headways towards 0.74 handle. The selling interest around the AUD intensified after latest RBA SoMP showed downward revisions to the inflation and wage growth forecasts. While also reflecting that the RBA leaves the door wide open for another rate cut.

Meanwhile, markets digest the RBA quarterly statement and refrain from creating fresh positions heading into the US NFP report due later today, which may provide next direction on the US dollar across the board, eventually impacting the Aussie.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7500/09 (round number/ 5-DMA) above which gains could be extended to the next hurdle located at 0.7540/50 (daily R2/ psychological levels). On the flip side, the immediate support located at 0.7390 (multi-week low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7346 (100-DMA).
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Source:: FX Street