The Australian dollar is falling today, following the Wall Street Journal report with RBA board member Ian Harper’s comments about the economy. The policymaker refused to exclude the possibility of a rate cut at the current 1.5% official cash rate and expressed his concerns about the slow wage growth and the soft household consumption. The AiG performance of construction index slipped to 54.7 in September from 55.3 before, confirming a part of the weakness in the Australian economy.
AUD/USD Edged Lower and Further Bearish Tendency Is Expected
The Australian dollar is recording the fourth red week in a row versus the U.S. dollar, sliding below the 200-week SMA. The AUD/USD pair plunged more than 3.6% since September 10 and early this morning it touched our suggested target at 0.7750 support handle (see technical analysis here: http://bit.ly/2kgkyaW). The commodity currency pair exited from the trading range 0.7810 – 0.8065 and now is approaching the 0.7710 support level.
The technical indicators are endorsing the bearish thought as there are holding in the negative territory. The RSI indicator lies near the 30 level, while the MACD oscillator slipped beneath the trigger line and is strengthening its momentum.
Analysis by JFD Research