- The Aussie dollar is struggling to pick up a bid, despite oversold conditions reported by the short-duration charts.
- Australia could have a new PM today, but that is unlikely to influence the RBA outlook.
Currently, the AUD/USD is trading in a sideways manner around 0.7245, having clocked a session low of 0.7240 earlier today.
The 14-hour relative strength index (RSI) is reporting oversold conditions, still, the battered Australian currency is not finding takers.
The political uncertainty in Australia may bite the dust as a new Prime Minister could be appointed today, however, the resulting relief rally could be short-lived as the momentum studies (5-day, 10-day MAs) have turned bearish, courtesy of yesterday’s 1.4 percent drop.
More importantly, the appointment of the new PM is unlikely to have a big impact on the Reserve Bank of Australia (RBA) outlook. As a result, the rate differential will likely remain biased toward the AUD bears.
AUD/USD Technical Levels
Resistance: 0.7257 (session high), 0.7283 (hurdle as per the hourly chart), 0.7290 (200-hour moving average)
Support: 0.7224 (Aug. 14 low), 0.72 (psychological hurdle), 0.7184 (61.8% Fib R of 2001 low/2011 high)
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