We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.60% Oil - US Crude: 0.79% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/f6xT4Uo2tO
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.20% 🇦🇺AUD: 0.13% 🇬🇧GBP: 0.08% 🇨🇭CHF: -0.03% 🇨🇦CAD: -0.05% 🇯🇵JPY: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/co2JkXN1A9
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.08%, while traders in France 40 are at opposite extremes with 89.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/spZkZaPsuM
  • AUD/USD Technical Analysis: September Floor Back Under Fire - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/09/23/AUDUSD-Technical-Analysis-September-Floor-Back-Under-Fire.html?utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis
  • LIVE IN 30 MIN: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • $AUD watchers should keep a close eye on iron ore prices. They fell sharply last month, albeit from very high levels. Get your market update from @DavidCottleFX here: https://t.co/pEY7SReQ7R https://t.co/da6P4i4qBL
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/2:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/QEgLPbz9Xp
  • RT @KyleR_IG: #ASX jumps half-a-per-cent this morning, as China's Vice Agriculture Minister states that last week's cancelled visit by a Ch…
  • #EURJPY pivot points (daily) – S3: 116.5, S2: 117.87, S1: 118.21, R1: 119.13, R2: 119.72, R3: 120.64 - https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
AUDUSD Risks Return to Flash Crash Lows as RBA Commits to Rate Cut

AUDUSD Risks Return to Flash Crash Lows as RBA Commits to Rate Cut

2019-05-21 10:31:00
Justin McQueen, Analyst
Share:

AUD Analysis and Talking Points

  • RBA Governor Lowe Commits to Easing Bias
  • Australian Dollar Technical Analysis | Return to Flash Crash Lows

DailyFX Q2 2019 Trading Forecasts for AUD

RBA Governor Lowe Commits to Easing Bias

Overnight, the RBA Governor explicitly stated that the central bank has an easing bias, something we have flagged for some time now (full story). Governor Lowe highlighted that lower rates would support employment and help lift inflation towards target, as a reminder, the RBA stated that a rate cut scenario would need to see inflation remain weak, while the unemployment rate would need to tick up, as such, with this being the case, a rate cut looks to take place at the June 4th meeting. However, with markets near enough fully priced in for a rate cut at the upcoming meeting the focus however will be on the outlook for further easing, which expectations are for another 25bps cut to be delivered by November.

AUDUSD Risks Return to Flash Crash Lows as RBA Commits to Rate Cut

Source: RBA

Australian Dollar Technical Analysis | Return to Flash Crash Lows

The outlook for the Australian Dollar remains soft, particularly given that the RBA are gearing up for cutting interest rates, while trade war tensions between the US and China have also escalated. Consequently, there is a risk that AUDUSD could make a return towards flash crash levels. On the weekly timeframe, the the pair remains weak. Focus in on last weeks lows at 0.6865, in which a break below opens up for a test of support 0.6830. Below there sees little in the way of notable support till 0.6740.

AUDUSD PRICE CHART: Weekly Time Frame (Oct 2017 – May 2019)

AUDUSD Risks Return to Flash Crash Lows as RBA Commits to Rate Cut

AUD TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.