AUDUSD finally broke to the downside after being held @ the 0.70700 handle which was this past week’s WM2. Technically this could set up a bearish trend which will see price trade to the downside all the way to the monthly bearish target of MM1. The area of support mentioned above could play as role reversal resistance in the days ahead. Price is currently retracing to the upside after touching support @ 0.700. Bears could see this as a potential lower high set up and another opportunity to sell. For bulls, however, they should wait for a reversal pattern for confirmation to go long.

MONETARY POLICY FOR MARCH 2019:

* RBA says low rates supporting economy
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says progress on unemployment, inflation expected to be gradual
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says inflation remains low and stable
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main uncertainty around outlook for household spending, effect of falling housing prices
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underlying inflation to pick up gradually
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central scenario for underlying inflation 2 percent in 2019, and 2.25 pct in 2020
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housing markets in Sydney, Melbourne going through period of adjustment
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labour market remains strong
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indicators suggest economy slowed over second half 2018
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further fall in unemployment rate to 4.75 pct expected
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wage growth to pick up gradually over time
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central scenario for economy to grow around 3 pct this year
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growth outlook supported by rising business investment, public spending on infrastructure
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growth in household income expected to pick up, support spending
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credit conditions for some borrowers have tightened
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the outlook for global growth remains reasonable, downside risks have increased
*
trade tensions remain a sense of domestic uncertainty

Comparison of the two most recent accompanying statements from Reserve Bank of Australia Governor Lowe:

AUDUSD H4

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