February 8, OctaFX – The Australian dollar declined today after the RBA lowered the economic forecast for the year. This week, the Aussie has declined sharply even after the initial hawkish statement from the RBA.
After the meeting, the central bank brought the possibility of a rate cut if the economic conditions weaken. The lowered guidance by RBA comes a day after the European Commission and the BOE lowered the guidance for the EU and UK respectively. A few weeks ago, the IMF lowered the global growth forecast as well.
AUDUSD Technical Forecast
The AUDUSD pair has declined to reach a low of 0.7057, which was the lowest level since January 10.
On the daily chart, the pair is along the upper line of the equidistance channel shown below. This price is also slightly below the 25-day and 50-day EMA. There is a likelihood that the pair will continue moving lower to test the important support of 0.7000.
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