In Tuesday’s trading session, the Australian Dollar (AUD) suffered further losses against the USD, with AUD/USD falling to 0.6615. This decline is largely attributed to sluggish Chinese economic activity which has resulted in a drop in commodity prices, illustrated by plunges in iron ore future prices to their lowest since early April.Despite signs of weakness in the Australian economy, the RBA continues to resist rate cuts due to stubbornly high inflation. This could potentially limit any further decline in the AUD. The RBA maintains its position as one of the last central banks within the G10 countries likely to start cutting rates, a stance that might extend the AUD’s gains.
Daily digest market movers: Aussie down partly due to economic concerns in China, markets await new clues on RBA’s stance
AUD/USD technical analysis: AUD/USD confirms correction following July’s sharp gains
While the AUD/USD pair has entered a correction phase after the sharp gains of early July, the main concern is that they have now fallen below the 20-day Simple Moving Average (SMA) but as long as the pair stays above the 100 and 200-day SMA, any downward adjustments could be considered ‘corrective’. If it falls below these lines, that could be a sell signal. The range to watch for AUD/USD is 0.6630-0.6600, as buyers must maintain their orbit around this area to avoid further losses.More By This Author:AUD/JPY Slides Below 104.00 Mark, Over One-month Low Amid Modest JPY Strength Gold Price Hangs Near One-Week Low Touched On Monday, $2,390-2,385 Holds The Key For Bulls AUD/JPY Price Analysis: Continues To Decrease After Severe Weekly Loss
