The Australian dollar fell sharply on a mix of a dovish RBA report and a Turkish crisis that became global. What’s next? Australia’s jobs report is in the limelight. Here are the highlights of the week and an updated technical analysis for AUD/USD.
The Reserve Bank of Australia left the interest rate unchanged as expected but hit the Aussie later in the week with a relatively dovish outlook. The doubts about inflation were joined by a risk-off sentiment that engulfed markets as the fall of the Turkish Lira could have implications for the euro-zone and the global economy. Trade tensions between the US and China did not help either for the Aussie dollar that dropped to the lowest levels since January 2017.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge: