AUD/USD Outlook (8th February 2019)

• AUD/USD broke key level
  
• RBA Monetary Policy Statement
  

Price Movement
Since yesterday, AUD/USD had moved downwards by around 30pips.

Trend
AUD/USD is trending downwards.

Macro Background
In the monetary policy statement released this morning, the RBA mentioned that “The Bank’s growth forecasts have been revised down in light of recent data, particularly for consumption. GDP growth is expected to be around 3 per cent over this year and 2¾ per cent over 2020.”

Also, the likelihood of an increase in Australian interest rate is lower than before. In the December 2018 Monetary Policy Meeting of the RBA, the minutes states that “members continued to agree that the next move in the cash rate was more likely to be an increase than a decrease.” However, the current monetary policy statement released this morning states that the probabilities of a rate hike and a rate cut “have shifted to be more evenly balanced than previously.”

Important Issue
None.

Technical
This morning, AUD/USD broke the key level of 0.71000.
Currently, AUD/USD is approaching the support level of 0.70548.

Price Levels
Current Price: 0.70646
Next Resistance: 0.71339
Next Support: 0.70548