FXStreet (Guatemala) - AUD/USD price has been drawn to the 200 DMA since the minor recovery in the greenback that took place last week when the bulls attempts were faded at 0.7360/40.
However, failures have crept in on minor recoveries to 0.7290 and the price has now fallen below the 20 SMA in recent trade at 0.7268 currently. Fundamentally, the RBA minutes were the focus last night that came with an upbeat tone overall.
"The bank noted that recent easing is supporting demand while the weakness in the currency is helping rebalance the economy away from mining activities. It also expects the economy to strengthen in the third quarter, driven by resource exports and housing investment," explained analysts at Brown Brothers Harriman., adding, "Still, we think that a rate cut by the Reserve Bank of Australia came back into play following last week's news that one of the country's largest banks raised the rate of variable rate mortgages, citing tightening of financial conditions. The RBA could act to offset this."
AUD/USD levels
Technically, 0.7385 Fibo retracement, is a key upside target in proximity of the 0.7367 2014-2015 downtrend and ahead of the 0.7439 August high. 0.7200 is key on the downside and a break and daily close below could enforce a continuation of a recovery in the greenback.
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