Prices continue to ease in the Australian Dollar (AUD), US Dollar (USD) cross, extending declines to 0.6770 Monday – the July low. The strain of “higher for longer” central bank policy is hanging over markets and will continue to deteriorate growth outlook. The RBA will hike rates today to 2.35% continuing their rapid rate hike plan to combat inflation. Some argue this tightening is too fast, others just a normal cycle not outside “neutral” ranges. The threat by the RBA is they create a stagnant economy and enter a recession later in 2022 early 2023. The chart is presenting a series of lower highs followed by lower lows going back to the start of 2022. Analysis of the current pattern highlights a possible retest of 0.6680 and a drift lower to 0.6600 “fib” support.
Current Level: 0.6814
Last Weeks Range: 0.6769-0.6955