25 July 2019, OctaFX – The Australian dollar declined after the RBA governor said that the low-interest rates will stay. This statement came two weeks after the central bank decided to lower interest rates for the second consecutive month.
Later today, the market will receive the unemployment rate in Spain, the German business expectations and climate for July, and the durable goods orders from the United States. The Labor Department will receive the initial jobless claims data. The earnings season will also continue, with key companies like 3M, ABB, Amazon, American Airlines, Anglo American, and Hershey expected to release their earnings.
AUDUSD technical analysis
The AUDUSD pair dropped sharply after the dovish statement by Governor Lowe. The pair reached a low of 0.6943, which was the lowest level since July 11. The pair has been dropping since July 19th, when it reached a high of 0.7080. On the hourly chart below, the pair is below the 14-day and 28-day moving averages. The pair is slightly below the 38.2% Fibonacci Retracement level. The RSI remains close to the oversold level. The pair will likely continue moving lower to test the 23.6% Fibonacci level at 0.6950.
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