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AUD/USD trades below 0.77

FXStreet (Mumbai) - The AUD/USD pair fell below 0.77 after the RBA minutes showed policy makers expect further weakness in the AUD due to recent declines in the commodity prices.

AUD falls as rate cut talks gain pace

The RBA minutes have triggered speculation that the bank could cut rates in May. Bill Evans, head of economics at Westpac says “It is clear in these minutes and in the Governor's speech today that a lower AUD is necessary to achieve the adjustment in the economy that will be required to provide some buffer to the huge fall in Australia's terms of trade and the sharp decline in mining investment.”

He further added “We continue to remain confident with our forecast that the Bank will cut rates by 25bps in May”. Consequently, the pair dropped to trade below the 5-WMA located at 0.7709.

AUD/USD Technical Levels

The immediate resistance is seen at 0.7717 (50-DMA), above which gains could be extended to 0.7756 (5-DMA). On the flip side, a break below 0.7672 could push the pair lower to 0.7589.

USD/JPY extends beyond 119.50

The US dollar finally pierced through the 119.50 –psychological barrier against the yen in the early European trades, driving USD/JPY to fresh session highs at 119.54, largely on the back of renewed strength in the greenback versus its major competitors.
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