AUD/USD reverses a dip to 0.7185, dovish RBA’s Stevens weigh

The selling pressure behind the AUD/USD pair intensified after the RBA Governor Stevens hinted at further easing in the upcoming months, sending the major deeper in the red below 0.72 handle.

AUD/USD vulnerable to further downside

Currently, the AUD/USD pair trades -0.39% at 0.7195, retreating from fresh session lows struck at 0.7185 in the last hour. The Aussie attempts a tepid-bounce from RBA Stevens’ induced sell-off towards multi-week lows, and now tries to reclaim 0.72 handle amid persisting risk-off environment.

The AUD/USD pair plunged nearly 35-pips in a knee-jerk reaction to RBA Stevens’ comments on inflation, which suggested that the central bank is not done cutting interest rates. Looking ahead, focus remains on the risk-off/on sentiment in the markets ahead of the US housing data due later in the NA session. While the main risk events for the Aussie this week remains the Aus capex numbers and GDP data from the US.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7250/61 (10 &200-DMA) above which gains could be extended to the next hurdle located at 0.7271/0.7300 (1h 200-SMA/ round number). On the flip side, the immediate support located at 0.7162/50 (Mar 2 Low/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7105 (April 29 & Mar 1 Low).