FxWirePro:AUD/USD refreshes intraday lows on RBA Lowe's cautious optimism, slips below 21-EMA support

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.35% lower on the day at 0.7341 at around 05:30 GMT

Previous Week's High/ Low: 0.7468/ 0.7345

Previous Session's High/ Low: 0.7357/ 0.7336

Fundamental Overview:

Reserve Bank of Australia (RBA) Governor Philip Lowe in a speech earlier on Tuesday said coronavirus lockdowns would cause a sharp contraction in the economy this quarter.

Lowe also reiterated that interest rates were not expected to rise from record lows until 2024 given the persistently sluggish growth of wages.

That said, the central banker expressed confidence that activity would rebound quickly once restrictions were eased in the December quarter.

Lowe's cautious optimism along with pre-U.S. CPI anxiety keeps the pair depressed. 

Technical Analysis:

- AUD/USD has been on a major downtrend since February, recovery has been capped at daily cloud

- Momentum has turned bearish with RSI slipping below 50 mark

- Price action is once again below 200H MA and the pair has slipped below 21-EMA support

- MACD is on verge of bearish crossover on signal line

Major Support and Resistance Levels:

Support - 0.7311 (20-DMA), Resistance - 0.7391 (55-EMA)

Summary: AUD/USD near-term bias has turned bearish after rejection at daily cloud. Scope for test of 200-week MA at 0.7216. Violation there will open downside. Bearish invalidation only above daily cloud.