AUD/USD attacks 0.7800 on RBA’s Lowe, at monthly lows

• Meets fresh supply on RBA Lowe’s remarks.
• Nears 2018 lows at 0.7793.
• Eyes US jobless claims, RBA’s MonPol statement and China CPI.

The AUD/USD pair is seen extending its bearish momentum into the second straight session, as the bears remain poised the lowest levels reached in 2018 so far at 0.7793 amid broad risk-aversion and cautious remarks from the RBA Governor Lowe.

AUD/USD: Further downside in play?

The Aussie tested the 0.78 handle on the release of the Chinese trade numbers and from there staged a tepid recovery, only to run through offers just shy of the 0.7850 barrier, as a renewed risk-aversion wave gripped the European stocks and dampened the sentiment around the higher-yielding currency, the AUD.

The spot extended its renewed downside and refreshed fresh monthly lows at 0.7803 after the RBA Governor Lowe said that there is no strong case of policy adjustment in the near-term while making it clear that the RBA does not see the need to tighten in "lock-step" with other central banks.

Later today, the major will get influenced by the US jobless claims data and risk sentiment on the Wall Street, as attention gradually shifts towards the RBA’s monetary policy statement and Chinese inflation data due tomorrow.  

AUD/USD levels to watch

Jim Langlands at FX Charts, noted, “Having reached the 0.7815 support, we may hang around here for a while but with the momentum indicators looking heavy an eventual break would not surprise, targeting 0.7780/60. On the topside, resistance will be seen at 7835 and 0.7850. Above here seems unlikely today and right now selling rallies is preferred, with an SL placed at around 0.7880/90”.