AUD/USD: soft on Stevens and risk-off

By FXStreet AUD/USD was sold-off further overnight in the US shift due to a poor performance on Wall Street and in a continuation of the long covering witnessed as a result of yesterday’s RBA statement on the price of the Australian dollar.

While rates were left at 2%, RBA Stevens suggested yesterday, in his words, that “under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy.” This was always a risk leading into the meeting, so there were no surprises there and a sell-off was the result, down to test the bulls commitments at the 0.75 handle where the price has stablised, consolidated and started to correct.

Commodities major roll in the FX space

AUD/USD levels

While spot is trading within a narrow range, the price has stablised at a critical support zone having unwound late March’s rally and snapping the rising channels support line. “In the 4 hours chart, the overall picture is bearish, with the RSI indicating heading firmly lower around 31, and supporting a decline down to 0.7380, the 38.2% retracement of the mentioned rally,” explained Valeria Bednarik, chief analyst at FXStreet.
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Source:: FX Street