The Australian Dollar started its decline on March, 14 following tepid economic data and the statement from the Reserve Bank of Australia (RBA). Yesterday, the decline continued after the RBA released its minutes for the meeting it held last week. In the past week, the AUD/USD pair fell from a high of 0.7916 to a low of 0.7660.
Generally, the statement was positive for the global economy. The officials noted that the top Australian trading partners were growing above their 5-year average. However, they were cautious about the country’s real estate sector which has seen falling house prices, especially in Sydney. In the past few months, Sydney has experienced sluggish house prices which has been replicated in other cities like Melbourne and Perth.
As a result of all the statement, traders believe that the RBA might not be under pressure to hike rates. Doing so would present the country to a crisis as more delinquencies happen.
Today, this is one of the major currency pairs to watch. Traders should pay close attention to the important price of 0.7780, which is an important support as well as an important Fibonacci Retracement level.