AUD/USD falls back to 100-day MA after RBA SOMP release

• RBA trimmed near-term unemployment forecasts. 
• But Aussie dollar is not impressed. 

AUD/USD fell from 0.7792 (session high) to 0.7771 (100-day MA) even though the Reserve Bank of Australia trimmed the near-term jobless rate forecasts. 

The central bank expects the unemployment rate to drop to 5.25 percent through June 2019. The previous forecast was 5.5 percent. However, it added that economy will take time before reaching full employment. 

Further, it talked about the slowdown in household income growth, the undesirable impact of strong AUD exchange rate and a possibility of a slowdown in wage growth. All this seems to have overshadowed the downward revision of the jobless rate forecast. 

Also, the safe havens are in demand following a 1000 point drop in Dow index. So, the resulting dip in AUD/JPY could be capping the upside in the AUD/USD pair. 

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "Technical readings in the 4 hours chart favor a bearish continuation, as the 20 SMA maintains its sharp bearish slope above the current level, while technical indicators lack directional strength, the Momentum below its 100 level and the RSI within oversold readings."

Support levels:  0.7780 0.7745 0.7710                                 

Resistance levels: 0.7820 0.7850 0.7890