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Old 11-06-2019, 11:04
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Default Re: Tifia Daily Market Analytics

AUD/USD: Current Dynamics

Last week, the Reserve Bank of Australia lowered its key interest rate by 0.25% to 1.25%. This is the first rate reduction since 2016.
Governor of the Reserve Bank of Australia, Philip Lowe, said that the key rate will be reduced to 1% by the end of this year. "The likelihood of lowering interest rates is still not excluded", said Lowe, hinting at the possibility of a further reduction in interest rates. This is a strong negative fundamental factor for the Australian dollar, which continues to decline in the foreign exchange market.
RBA leaders called increased uncertainty in world trade a risk to the Australian economy. By lowering the interest rate, the RBA is trying to accelerate GDP growth, reduce unemployment to 5%, and accelerate inflation.
Meanwhile, the situation in global financial markets is gradually calming down after last Friday Donald Trump tweeted that the imposition of duties on goods from Mexico has been canceled, so far.
Investors are gradually emerging from defensive assets, acquiring more profitable, but also more risky assets of the stock market. The demand for the dollar is also growing, despite expectations that the Fed will cut interest rates.
At the beginning of the European session, the DXY dollar index futures traded near the 96.72 mark, 14 points higher than the opening price of the current week, and the AUD / USD pair - near the 0.6955 mark.
Now investors will follow the publication on Thursday (01:30 GMT) data from the Australian labor market. If they turn out to be worse than the forecast or weaker than the previous values, then AUD will accelerate the decline. A positive report on the labor market will support AUD.
AUD / USD remains in a long-term bearish trend.
Below the key resistance levels of 0.7085 (EMA144 on the daily chart), 0.7140 (EMA200 on the daily chart) negative dynamics prevail.
Breakdown of short-term support levels of 0.6974 (ЕМА200 on 4-hour chart), 0.6962 (ЕМА200 on 1-hour chart) speaks in favor of further reducing AUD / USD with reduction targets located at support levels of 0.6900, 0.6830 (2016 lows), 0.6770.
Support Levels: 0.6900, 0.6830, 0.6800, 0.6770
Resistance Levels: 0.6962, 0.6974, 0.7000, 0.7085, 0.7140

Trading Scenarios

Sell in the market. Stop Loss 0.7025. Take-Profit 0.6900, 0.6830, 0.6800, 0.6770
Buy Stop 0.7025. Stop Loss 0.6940. Take-Profit 0.7085, 0.7140

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