- AUD/USD remains depressed under the 50-day average of 0.6336.
- RBA’s minutes showed policymakers think less frequent bond purchases may be required in the near future.
- Risk sentiment remains fragile due to WTI’s record drop below zero.
AUD/USD continues to trade largely unchanged on the day just below the 50-day average of 0.6336 following the release of somewhat less dovish minutes of the Reserve Bank of Australia’s April meeting.
“The board remained committed to supporting jobs, incomes, and business and to do whatever it takes to achieve the three-year bond yield target,” the minutes said. However, policymakers also thought that smaller and less frequent purchases of government bonds would be required in the future.
So far, the Aussie pairs haven’t witnessed any boost from the RBA’s comment on bond purchases. As noted earlier the AUD/USD is hovering under the 50-day average and could suffer deeper losses during the ahead as the risk sentiment looks fragile, courtesy of the unprecedented oil price slide seen on Monday.
The West Texas Intermediate (WTI) crude fell below zero on Monday for the first time on record on oversupply concerns, pushing the June Brent-WTI spread well above $5. While some traders are expecting a recovery rally, analysts at Goldman Sachs have warned that the June WTI contract is likely to face selling pressure.
That said, currently, the futures on the S&P 500 are reporting a 0.65% rise. If the futures continue to gain ground, risk reset may be seen. That will likely put a floor under the Aussie.
Technical levels
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