The Aussie is firmly in red in early Thursday’s trading and accelerated stronger down after speech of RBA’s governor Lowe, who said that the central bank has considerable independence and does not need to follow global trend, when most of major central banks were stuck in hawkish tone recently.
Lowe said the RBA is prepared to run its own race on setting the monetary policy, adding that rates will not go up for some time, but the raise of interest rates is more likely than cut.
Strong sell-off that followed Lowe’s comments brought the pair near Monday’s correction low at 0.7940.
Strong bids lay at this zone and may keep fresh bears limited for some time, but renewed bearish tone which is building after Wednesday’s strong upside rejection and early Thursday’s strong bearish acceleration, threatens of further weakness.
Clear break below 0.7940/29 (18 Sep low / Fibo 61.8% of 0.7807/0.8124 upleg) would spark fresh downside and expose supports at 0.7890/65 (daily cloud top / higher base).
Broken bull-trendline (0.8000) and south-turning daily Tenkan-sen (0.8021) mar good barriers which should cap recovery attempts.
Res: 0.8000, 0.8021, 0.8035, 0.8102
Sup: 0.7940, 0.7929, 0.7890, 0.7865
