AUD/USD strapped to 0.7200, regardless of USD softness
AUD/USD continues to drift silently near 0.7200 and Aussie markets appeared utterly indifferent to US Dollar weakness on Wednesday as the AUD continued to grind it out near the key technical level, and a notable lack of buying momentum in the Aussie signals that further downside could be on the cards the next time market flows set their sights on the USD.
The Reserve Bank of Australia (RBA) posted another central bank bulletin, but the information contained within failed to spur markets in either direction as the bulletin treaded the pedestrian line, although the RBA highlight their potential to intervene in currency markets if the intermarket becomes too "disorderly or dysfunctional", though the RBA hasn't used that policy tool since briefly in 2008, and 2001-03 before that.
AUD/USD Levels to watch
The Aussie remains constrained by the critical 0.7200 handle, and as FXStreet's own Valeria Bednarik noted, "the AUD/USD pair remains unable to advance beyond its 200 SMA in the 4 hours chart, which maintains a mild bullish slope, with the pair also battling with the 23.6% retracement of its latest daily decline. In the same chart, the 20 SMA lacks directional strength a few pips below the current level, while the 100 SMA moves marginally lower now converging with the 38.2% retracement of the same slide at 0.7260. Technical indicators in the mentioned chart lack directional strength around their midlines, all of which indicates an absence of buying interest. The downward potential will increase on a break below 0.7170 a strong static support."
Support levels: 0.7200 0.7170 0.7140
Resistance levels: 0.7255 0.7300 0.7340