AUD/USD dips to 0.7373 on RBA’s Stevens

AUD/USD dips to 0.7373 on RBA’s Stevens
FXStreet (Mumbai) – The Australian dollar dived deeper into red versus the US dollar in the mid-Asian session, knocking-off AUD/USD to fresh session lows, mainly driven by RBA Governor Stevens comments as he talked down on the exchange rate while maintaining further scope for rate cut this year.

AUD/USD drops from 0.7402

Currently, the AUD/USD pair trades -0.55% lower at 0.7379, having posted fresh session lows of 0.7373 shortly after RBA Stevens remarks. The Aussie wiped out upbeat Aus CPI backed gains and fell further into losses in a knee-jerk reaction to RBA Governor Stevens comments, citing that ‘a somewhat lower a$ was necessary for economy’ while adding that ‘further cut in rates remains on the table’.

Earlier in the session, the Aussie was bolstered and spiked to 0.7439 high following upbeat Australia’s CPI data which showed that last quarter the CPI rose 0.7% after fuel prices were lifted back almost to levels seen before the drop in global oil prices last year. This follows a mere 0.2% rise in the two preceding quarters when the drop in fuel prices hit hardest on inflation.

Meanwhile markets digest RBA Stevens speech awaiting existing home sales data from the US due later in the day.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7439 (Today’s High) levels, above which gains could be extended to 0.7489 (July 15 High) levels. On the flip side, support is seen at 0.7341 (Today’s Low) levels from here it to 0.7326 (July 20 Low) levels.
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AUD/USD dips to 0.7373 on RBA’s Stevens
Source: FXStreet