AUD/USD plunges on RBA minutes

By FXStreet FXStreet (Guatemala) – AUD/USD has buckled on the back of the RBA minutes and plunged some 25 pips on the knee jerk on the five minute sticks.

The RBA minutes explained that the wage pressures are still weak and growth is expected to stay below average. The key takeaway again is that the Aussie is preferred to be lower to help sustain growth while the RBA will continue to monitor data while inflation remains on target for next two years.

The main risk comes with the FOMC this week and if the Fed do not hike and there are accompanying dovish remarks, then this could all add to the bid in the commodity linked currencies and see the Aussie take flight.

Technically, we have broken down the 20 SMA on the hourly chart which makes way for 0.7080 on continued selling pressure. The 200 SMA is positioned at 0.7010 guarding the recent lows of 0.6908.
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Source:: FX Street