AUD-USD is off it's recent high of AUD$0.8263 (3rd June), and looks to be retracing back down to the next support level at AUD$0.7740. If this support is breeched then the next support level is around AUD$0.7500.
Pressure for the retracement increased earlier in the week when :
- the Reserve Bank of Australia (RBA) left the cash rate on hold and strongly indicated that ecxonomy was sufficiently stimulated with the impacts of previous rate cuts now flowing through.
- An historic balance of trade deficiet caused by the high value of the AUD
- GDP was reported as a positive 0.4% growth - theoretically making Australia one of the only advanced economies in the world to not be in recession
- In addition to the economic indicators, the technical indicators are also showing a weakness with the oscillator declining, MACD crossing over and the ADX weakening.
So is the AUD in decline and is the next level of support AUD$0.7740 ?
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