AUD/USD turns negative after RBA minutes
- AUD/USD has turned negative as RBA minutes took note of dismal wage growth.
- Eyes RBA Governor Lowe's speech.
The AUD/USD pair is trading in the red, courtesy of the dovish RBA minutes. As of writing, the currency pair is trading largely unchanged on the day at 0.7548.
Key points from minutes
- Considerable uncertainty" on how quickly wages might pick up, add to inflation.
- Pass-through to inflation could be delayed by many factors including retail competition.
- Consumption growth likely to be lower in 3q than 2q.
- Local labor market had been surprisingly strong, above-average jobs growth likely to continue
- Any further rise in A$ would slow expected a pick-up in inflation, economy.
The dovish comments on wage growth and consumption pushed the AUD/USD to a session low of 0.7545. The spot clocked a high of 0.7558 earlier today. Ahead in the day, the Aussie dollar could take cues from RBA governor Lowe's speech and treasury yields.
AUD/USD Technical Levels
Jim Langlands from FXstreet writes - "As before, the downside seems to be the path of least resistance and the immediate support is still at the 0.7535, November low, which will continue to be strong, but below which would target Fibo support at around 0.7515 a break of which would then look towards 0.7485 and 0.7460/70 (Rising trend support). As I said before, I suspect the Aud$ is unfolding a bear flag formation and is likely to see continued downside pressure which will eventually take us towards 0.7400. Patience will be required, but trading from the short side is still preferred."
"On the topside, resistance will be seen at the session high and again at 0.7600/10, at 0.7620 and at 0.7650. I doubt we go close to the top end of this, but if wrong, above here could then revisit the 13 Nov high of 0.7665, above which would then allow room to move towards 0.7675/80 and possibly 0.7695/0.7700."