Australian Dollar consolidates near 8-month low as the US Dollar claims the 93.00 handle

July 21, 2021 - 3 days ago
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The Australian Dollar took further casualties on Tuesday and slipped to a fresh eight-month low against the greenback at US$0.7298.

On the COVID-19 front, new cases are rebounding in the U.S. as the COVID-19 Delta variant spreads, largely among the unvaccinated.

According to CDC data, the U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago.

The Reserve Bank of Australia released the minutes from its July 6 meeting earlier Tuesday and reiterate their rejection of the rate hike before 2024 while saying, “They will not increase cash rate until actual inflation is sustainably within 2-3% target range.”

On Wednesday, Australia June Retail Sales missed the -0.7% forecast and came in at -1.8%.

Technically, as the market participants keep their eyes on the COVID-19 Delta variant updates and other risk-related headlines, we could see further losses.

However, the downside target is ‘wide’ as it holds between US$0.7210 to US$0.7260, which expects a bullish response.

The resistance is located from US$0.7370-80.

Viewing the daily chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator supports a negative signal but is extremely oversold.

Meanwhile, the Moving Average Convergence Divergence (MACD) holds a negative signal.

The Average Directional Movement Index (ADX) trend indicator supports the presence of a bearish trend.

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