AUD/USD: Sentiment is to buy dips – OCBC

Australian Dollar (AUD) inched higher. Pair was last at 0.6532 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

RBA to cut cash rate at the next meeting

"Bearish momentum on daily chart shows signs of fading while RSI rose. We stick with our bias to trade on longs. Resistance here at 0.66 levels. Support at 0.6420/30 levels (100 DMA, 50% fibo retracement of 2024 high to 2025 low), 0.6380 (200 DMA) and 0.6310 (38.2% fibo)."

"Softer 2Q CPI, PPI and decline in job advertisements paved the way for RBA to cut cash rate at the next meeting (12 August), which is now largely priced. For the year, cash rate futures are already pointing to about 65bps cut."

"Unless we get further weakness in AU data or dovish repricing, otherwise the current dovish expectations is already in the price. Positive sentiment may turn to be supportive of AUD."