AUD stumbles after Westpac fires the first crippling shot at Australian consumers
AUD/USD falls to a session low of 0.7300 on the day as the aussie suffers a dip across the board following Westpac's decision to raise its variable mortgage rate by 14 bps. Aussie yields are falling and that is the main reason dragging the currency lower as the decision by Westpac will only cause more complications for the RBA in moving out of its current rates dilemma.
The pair is now heading below the week's low of 0.7308 and looks set to test bids and the swing region just under the 0.7300 handle. This will be a key area to look out for to see if buyers can stall any near-term decline. Move below 0.7300 and the near-term bearish bias will only gather more conviction.
The headline earlier caused price to fall below both the key hourly moving averages and now the bias is favouring sellers. But I'd look for a break below the 0.7300 handle for confirmation that the momentum will swing towards the downside next.
However, the thing about the aussie is that it has been in this state for majority of the year. That is no matter what happens in markets, the currency just can't get off the floor. That was evident in overnight trading as well and today's news only gives more reason for sellers to keep the overall momentum intact.
And that continues to be the best way to play AUD/USD.
