10 Jun 2015
AUD/USD drops sharply below 0.7650 on RBA Stevens
FXStreet (Mumbai) - The Australian dollar dived deeper in red versus the US dollar in the mid-Asian trades, knocking-off AUD/USD to fresh session lows. The Aussie dropped sharply following dovish comments from RBA Governor Stevens as he speaks at the Economic Society of Australia, while Moody’s downward revision of Western Australia outlook also dragged the pair lower.
AUD/USD drops from 0.7682
Currently, the AUD/USD pair plunges -0.57% to fresh session lows of 0.7642, from round 0.7680 before Stevens comments. The Aussie came under renewed pressure and dropped nearly 30 pips after RBA Stevens said in his speech that the Australian dollar is expected to depreciate further while the main market mover came in after he stated that the central bank is open to more easing if it is necessary for economic growth.
In addition, Moody’s downgrading of Western Australia’s Aa1 rating to negative also negatively impacted the Aussie. Earlier in the session, downbeat Aus consumer sentiment reading also hit the Australian dollar, dragging it below 0.77 barrier.
The Westpac-Melbourne Institute Consumer Sentiment index tumbled 6.9% in June from 102.4 to 95.3, where a figure above 100 indicates optimism on the current economic conditions and their personal finances, while a reading below 100 signals pessimism. This was the lowest reading for the index since January.
Looking ahead, employment numbers will be published on Thursday, where the market anticipates the jobless rate to stay at 6.2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7722 (June 9 High) levels, above which gains could be extended to 0.7790 (June 4 High) levels. On the flip side, support is seen at 0.7615 (May 28 Low) levels from here it to 0.7596 (June 5 Low) levels.
AUD/USD drops from 0.7682
Currently, the AUD/USD pair plunges -0.57% to fresh session lows of 0.7642, from round 0.7680 before Stevens comments. The Aussie came under renewed pressure and dropped nearly 30 pips after RBA Stevens said in his speech that the Australian dollar is expected to depreciate further while the main market mover came in after he stated that the central bank is open to more easing if it is necessary for economic growth.
In addition, Moody’s downgrading of Western Australia’s Aa1 rating to negative also negatively impacted the Aussie. Earlier in the session, downbeat Aus consumer sentiment reading also hit the Australian dollar, dragging it below 0.77 barrier.
The Westpac-Melbourne Institute Consumer Sentiment index tumbled 6.9% in June from 102.4 to 95.3, where a figure above 100 indicates optimism on the current economic conditions and their personal finances, while a reading below 100 signals pessimism. This was the lowest reading for the index since January.
Looking ahead, employment numbers will be published on Thursday, where the market anticipates the jobless rate to stay at 6.2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7722 (June 9 High) levels, above which gains could be extended to 0.7790 (June 4 High) levels. On the flip side, support is seen at 0.7615 (May 28 Low) levels from here it to 0.7596 (June 5 Low) levels.