AUD/USD revisits session lows on RBA rate cut talk
AUD/USD fell back to a session low of 0.7772 after a Wall Street Journal report said that RBA board member Ian Harper sees scope for a rate cut if consumption across the economy loses momentum entirely.
Harper’s comments come a day after the official data in Australia showed the retail sales in August fell 0.6%.
Harper also added that the central bank would not want to risk premature tightening and the level of the AUD also remains an inhibitor to growth even after the recent decline.
Consequently, the AUD/USD pair fell from 0.7798 to 0.7772 levels. At press time, the currency pair is trading at the 100-DMA support of 0.7782.
AUD/USD Outlook – Further losses look likely – Jim Langlands from FX Charts
Preferred Strategy: The Aud has come under pressure from the miss in yesterday’s Retail Sales and currently sits at the important support at 0.7785. Further losses look likely and I suspect a test of 0.7765 and possibly 0.7725 is not too far away. We may see a minor squeeze but selling into any move to back above 0.7800 seems to be the plan. Sell AudUsd @ 0.7815. SL @ 0.7855, TP @ 0.7725