- Aussie was under pressure after RBA minutes revealed that any policy change would be dependent on domestic economic conditions.
- The minutes also took note of the disinflationary impact of the strong Aussie dollar, subdued price pressures, low wage growth and spare capacity in the labor market.
- AUD/USD retraced gains to close below 20-DMA on Monday's trade and extended downside today.
- 5-DMA at 0.7839 is offering good support, the major has edged higher. Break below 100-DMA at 0.7807 could see further downside.
- However, upside is seen struggling at 20-DMA and a decisive break above could see test of 0.80 levels.
- US import/export prices, industrial production and capacity utilization data, in focus for some fresh impetus.
Support levels - 0.7839 (5-DMA), 0.7807 (100-DMA), 0.7733 (Oct 6 low)
Resistance levels - 0.79, 0.7909 (50-DMA), 0.7925 (Weekly 200-SMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 39.9565 (Neutral), while Hourly USD Spot Index was at 47.3493 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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