AUDUSD started the week on a similar note to EURUSD but overnight trading amid RBA’s minutes pushed the currency pair 0.4 percent down. Tuesday’s flows started coming through after the central bank said that since inflation remained stubbornly neutral and unemployment rose a “decrease in the cash rate would likely be appropriate”
Bearish Push Now Supported From Fundamentals Too
Aussie bulls had a go at the last upside move near $0.72 last week and failed. Monday’s attempt was even more piteous. With a confluence between the long-term descending trendline (yellow) and the short-term ascending trendline (red) weighing in on prices, the currency pair could head lower towards the golden ratio near 71c. barrier. However, a downside break outside the short-term ascending channel must take place first.
