AUDUSD: Aussie tests 200 DMA After Weak Data, RBA Decision

06 / 03 / 2018
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The AUDUSD pair was trading marginally higher on Tuesday morning and was hovering slightly below the 200 day moving average, trading near 0.7770 during the London session.

Earlier in the day, Australian current account worsened notably to a deficit of 14 billion AUD, down from a deficit of 11 billion previously. Additionally, retail sales improved from -0.5% to 0.1% month-on-month, but analysts had expected an improvement to 0.5%. Both numbers missed expectations.

The Reserve Bank of Australia left the main rate unchanged at 1.5%, whilst it also acknowledged that inflation will remain below the 2% target for some time. Furthermore, the central bank noted that lose monetary policy is continuing to support the Australian economy. The Aussie slipped after this decision.

The Aussie jumped to the 200 day moving average at 0.7785 during the Asian session, but failed to break it and was sold-off. This is the first major resistance for today’s trading and if conquered, the AUDUSD pair might accelerate to 0.7820.

On the other hand, the support is located at 0.7750 and if bears will be stronger, the Australian dollar could decline closer to the current swing lows around 0.7720. In all cases we strongly recommend to have rigorous money and risk management.

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