AUD/USD drifting towards the 0.6300 level – SocGen

AUD/USD drifts to 11-month low on RBA hold. Economists at Société Générale analyze the pair’s outlook. 

Regaining downward momentum

AUD/USD has experienced multiple attempts of rebound since August however it has consistently failed to reclaim the hurdle at 0.6525 which is also the 50-DMA. Break below lower limit of recent range denotes regain of downward momentum. 

The pair is now drifting towards potential objective of 0.6300 representing the trend line connecting lows of March and May. There is risk of a deeper downtrend if it struggles to cross above previous range limit at 0.6370. 

Next projections are located at 0.6200/0.6170.