What Drives AUD Lower? June 02, 2021

What drives AUD lower?

The Aussie weakens extremely against U.S. dollar after RBA’s Policy Rate Decision released yesterday. No changes were there in RBA’s Monetary Policy Statement and overall confirming dovish message too. Let’s take a look on key highlights from the RBA Meet:

  • Cash rate target unchanged at 0.10%, as expected
  • 3 year yield target unchanged at 0.10%, as expected
  • RBA will not increase the cash rate until actual inflation is sustainably within the 2% to 3% target range
  • Conditions for a rate rise unlikely to happen until at least 2024, at the earliest
  • High priority on a return to full employment
  • At Its July Meeting, The Board will consider whether to retain the April 2024 bond as the target bond for the 3 – year yield target or to shift to the next maturity

Just after RBA’s meet, China Central Bank published the following news:

  • China Central Bank – We actively encourage financial institutions to adopt a dollar – denominated loan with a floating-rate benchmark.
  • China’s Central Bank – A relevant agreement for domestic Libor derivatives is currently seeking input and will be announced shortly.
  • China’s Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen Agree China – U.S. Economic Ties Very Important.

One side China is putting limited trade deal with Australia while on other side China is expanding trade deals with the U.S. Today in Asian hours, Australia too released GDP q/q data higher than expected but lowered than previous quarter.

Technical View:

AUD/USD: The Aussie depreciates sharply on Wednesday and touches $0.7715 mark in European hours. The pair made intraday high at $0.7773 and low at $0.7715 mark. A day chart is bullish but H1 chart with triple EMA is about to give successful crossover for the bearish trend. A sustained close above $0.7770 on H1 chart requires for the upside rally. Alternatively, a consistent close below $0.7702 will check further supports.

Key Resistances: $0.7772, $0.7790, $0.7826, $0.7854, $0.7878

Key Supports: $0.7702, $0.7677, $0.7650, $0.7638, $0.7597

Take a look and do trade wisely!

Good Luck

Share on facebook
Share on linkedin
Share on twitter
Share on telegram
Share on whatsapp
Unleash Powerful Trading Conditions with TP Global.

Recent Posts



Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines.

Mail us

Drop mail at:

Contact us

Call or Whatsapp
+44 7441 416320

Risk Warning: Forex and Contracts for Difference (CFDs) are leveraged products. Trading in these products is highly speculative and involves substantial risk. Please note that even knowledgeable and well-experienced investors can experience large potential losses because of trading in Forex and CFDs. Consequently, investors should be fully aware of all the risks involved when trading Forex and CFDs and accept all the negative consequences associated with such trading. Please always remember that trading in Forex and CFDs might not be suitable for all investors. It is desirable investors who would consider trading, to do so only with money that they can afford to lose. You are also recommended to seek independent financial advice if necessary. The content on this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Apple, the Apple logo, iPod, iPad, iPod touch, and iTunes are trademarks of Apple Inc, registered in the US and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.

TP Global FX Limited is registered and regulated by Vanuatu Finance Service Commission (VFSC) with a registration number 40409.

TP Global Limited is registered and regulated by FINANCIAL SERVICES COMMISSION (FSC) MAURITIUS with a registration number GB21026474

TP Global FX Limited is registered and regulated by Financial Services Commission, Mauritius with a registration number GB21026474

TP Global Fx Africa Limited is incorporated in Federal Republic of Nigeria under the Companies and Allied matters Act 1990 with registration number RC 1674202. The objects of the company are all subject matters not forbidden by Companies and Allied Matters Act 1990. To provide Electronic Platform through which clients can choose currencies, commodities, indexes, CFDs and other leveraged financial instruments to trade.

mappin at-sign phone close