AUD/USD drops to 50-day MA support on RBA minutes
- AUD/USD tests 50-day MA support as RBA minutes retained easing bias.
- Aussie house price index dropped less-than-expected in the second quarter.
The offered tone around the AUD strengthened, pushing the AUD/USD pair lower to the 50-day moving average support of 0.6849 after the minutes of the Reserve Bank of Australia's September meeting said the board would consider further easing if needed to support growth and inflation targets.
The minutes added that the upward trend in wage growth appears to have stalled and risks to the global outlook continue to be tilted to the downside.
The central bank's take on wage growth likely strengthened the bearish pressure around the AUD. Also, the Australian house price index fell 0.7% quarter-on-quarter in the second quarter, the data released at 01:30 GMT showed. The market was expecting a decline f 1% following the 3% drop in the first quarter.
The better-than-expected data has failed to put a bid under the AUD, possibly due to RBA's dovish language on wages.
The bank is expected to cut rates in November and February, having delivered back-to-back rate cuts in July and August.
As of writing, AUD/USD is trading at 0.6852, representing 0.18% losses on the day, having hit a high of 0.6870 earlier today.