AUDUSD breaks key support, sets a new low for 2023 after RBA holds rates

The current steadfastness in AUDUSD witnessed a dramatic conclusion in the recent trading session. The pair, which had previously rebounded and obstinately maintained above the main 0.6400 support point, has now shifted the paradigm. Factors responsible for the breakdown of the exchange rate include adverse risk responses, disheartening PMI data from China, and stable interest rates from the RBA. Consequently, the AUDUSD has now broken its recent support thresholds, falling to its lowest point since November 2022.

Looking at key levels to watch in AUDUSD the 0.6400 will be key in the short term, this is a major S/R level (as most big figures are in AUDUSD) a retake and hold of this level would cement the recovery in AUDUSD and likely a move higher to re-test the 0.6500 resistance level, however if this level is tested and is confirmed as a new resistance level a further move to the downside to test key support levels is a probability.

These key levels are:

Daily trendline support around 0.6320

November 2022 lows 0.6275

Major support at the big 0.6200 figure.

Also an RSI under 30, indicating an extreme oversold market, the RSI has been a good indicator of turning points in AUDUSD in the recent past.

Critical risk events forthcoming for AUD include the declaration of the Australian Q2 GDP on Wednesday, the Trade Balance of July on Thursday, and the disclosure of Chinese CPI data on Saturday. Those involved in AUD trading should closely monitor these crucial dynamics during these revelations.