AUD/USD Outlook: Aussie Remains Firmly In Red On Fears Of Another RBA Rate Cut

Technical analysis of Forex market

The Australian dollar extends steep five-day fall and probes below 0.6900 handle on Friday, pressured by fears of another RBA rate cut next month.

Weaker than expected Chinese IP added to negative outlook, as markets await for release of US retail sales data (May 0.7% f/c vs -0.2% prev) which would further depress Aussie on strong release, but also hit doves advocating Fed rate cut on FOMC policy meeting next week.

Technical picture remains negative on rising bearish momentum and multiple bear-crosses of daily MA’s in bearish configuration.

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Bears focus key support at 0.6864 base, break of which would signal extension of bear-leg from 0.7205 (17 Apr high), interrupted by 0.6864/0.7022 correction).

Broken 20SMA (0.6931) is expected to cap upticks and keep bears intact.

Res: 0.6901, 0.6931, 0.6940, 0.6957
Sup: 0.6892, 0.6881, 0.6864, 0.6800

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