AUDUSD: Aussie Trades Muted After RBA Minutes

20 / 03 / 2018
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The Australian dollar slipped on Tuesday and was 0.20% lower during the London session, with the AUDUSD pair trading around the 0.77 mark.

Earlier in the session, the minutes of the Reserve Bank of Australia (RBA) March meeting expressed concerns regarding the household debt and stressed the need for faster wage growth. The tone was cautious which led to some Aussie selling.

The US president Donald Trump is about to impose new tariffs on Chinese imports in an annual amount of 60 billion. These new tariffs might cause retaliation from China and investors could sell riskier assets in the next days, which usually leads to the AUD underperforming.

Additionally, copper is seen testing the key bullish trendline and if not held, further losses are likely, which will have a negative impact on the Australian dollar.

The AUDUSD pair dropped to three-month lows on Monday and the outlook continues to seem negative. The next support is located at yesterday’s lows at 0.76875 and if broken, the Aussie might deteriorate to 0.7650. The resistance is located at 0.7715 and if bulls will be stronger, the next target could be at 0.7750. In all cases we strongly recommend to have rigorous money and risk management.

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