Australian dollar is back under pressure

The Reserve Bank of Australia kept its benchmark interest rate unchanged yesterday at 0.25%.


As expected, the Reserve Bank of Australia kept its benchmark interest rate unchanged yesterday at 0.25%. The central bank added that it will keep considering how additional monetary easing could support job growth. This morning, September Ai Group Services Index was released at 36.2, below 43.0 expected.

From a technical point of view, on a daily chart, AUD/USD has broken below an internal rising trend line and stands below its 50-day moving average (in blue). Readers may therefore consider the potential for further weakness below horizontal resistance at 0.7200. The nearest threshold would be set at September bottom at 0.7000 and a second one would be set at horizontal support at 0.6920 in extension.

Source: TradingView, GAIN Capital

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