Continues Move Lower

AUD/USD has come under pressure throughout the session, the pair dropped to lows of 0.7455 before seeing a slight bounce. Last at 0.7464. Focus is on key support at 0.7445, Jul 2 low. Last week's move lower maintains the price sequence of lower lows and lower highs. Furthemore, moving average studies remain in a bear mode, reinforcing a bearish theme. A break of 0.7445 would open 0.7378, a bear channel base drawn off the Feb 25 high.

• RBA Governor Lowe spoke but offered little new commentary. Key excerpt:
• "I would like to close by reiterating the 2 points I made earlier in the week. The first is that the condition for an increase in the cash rate depends upon the data, not the date; it is based on inflation outcomes, not the calendar.
• The second is that the step-down in the RBA's bond purchases from $5 billion to $4 billion a week does not represent a withdrawal of support by the RBA….We will hold a little more than 30 per cent of Australian government bonds on issue and 15 per cent of state and territory bonds. This represents a substantial and ongoing degree of support to the Australian economy. The adjustment in the rate of weekly purchases does not change this."