AUD/USD Price Analysis: Aussie Slipping Towards 0.7400

The Australian Dollar has lost some of its value against the US Dollar this week, and it looks set to slip even lower over the coming hours. The AUD is likely to end the week in a bearish mode against the Greenback.

AUD/USD Pair Could Slip Lower

The AUD/USD pair ended yesterday below the key support at 0.7450. The pair has maintained that region since the Asian market began earlier today. Economists at OCBC Bank believe that the bulls would have to defend the next support zone around 0.7400 if there should be any chance of an upside movement in the short term. However, the technicals don’t support a strong rally for the Aussie at the moment.

Fresh Coronavirus worries in Australia is the major reason the Aussie is losing against most of the other major currencies. The concern is taken a toll on the global risk sentiment. Since Aussie is viewed as a riskier currency, it is bound to lose momentum as investors dump it in favor of the safe currencies like the USD and JPY.

The RBA Maintains A Dovish Tone

The Reserve Bank of Australia is maintaining its dovish stance on the economy. The RBA’s Lowe reiterated that it is important to get the unemployment rate down. He wants it to decline towards the 4% region instead of the current 5.1%.

Furthermore, he said inflation might not return to the 2-3% target for another three years. Thus, confirming the long-term dovish stance of the apex bank. With the dovish stance of the RBA, the Aussie could sustain further losses against the US Dollar over the coming days or weeks.

Analysts now expect the AUD/USD to drop towards the 0.7400 soon, making the pair an attractive buy for investors.