AUDUSD Hits 6-Year Low As RBA Leaves Interest Rate Unchanged
The AUD/USD pair fell down to a fresh 6-year low of 0.7015, and remains a few points above it, with the Aussie being weighed by Chinese turmoil.
Earlier in the day, the RBA had its monthly economic policy meeting, where policymakers decided to leave the cash rate unchanged at 2.0%.
Governor Stevens said that the Central Bank acknowledged that the “global economy is expanding at a moderate pace, with some further softening in conditions in China and east Asia of late,” which reduces chances of an economic recovery in Australia.
The less dovish than-expected tone in the speech gave the pair a temporal boost, sending it up to 0.7153, from where it slowly resumed the downside.
Technically, the bearish potential is still strong, as in the 1 hour chart, the 20 SMA presents a strong bearish slope well above the current level whilst the technical indicator hover near oversold readings.
In the 4 hours chart, the Momentum indicator heads sharply lower below the 100 level whilst the RSI hovers around 31, supporting the shorter term view.