Australian dollar accelerated lower and hit three-week low in early Wednesday’s trading, signaling continuation of larger downtrend which paused in past two days.
Strong decrease in Australian inflation (May 5.6% vs 6.1% f/c; Apr 6.8%) reduces possibilities for another rate hike in the policy meeting next week, making the Aussie dollar less attractive for investors.
Fresh weakness confirmed bearish signal on break of 200DMA and cracked next pivotal supports at 0.6626 (Fibo 61.8% of 0.6458/0.6899 / weekly cloud base), though bears may slow the pace as daily studies are oversold.
Consolidation should stay capped under 200DMA (0.6690) to keep bears intact for final break of 0.6626 pivots and bearish continuation towards 0.6562 (Fibo 76.4%) and 0.6500 (round-figure) in extension.
Res: 0.6678; 0.6690; 0.6705; 0.6731.
Sup: 0.6626; 0.6600; 0.6562; 0.6500.
