Global macro overview for 24/05/2016:

In his recent speech, the Reserve Bank of Australia's outgoing Governor Glenn Stevens, has been defending the RBA inflation target projections despite the overwhelmingly low inflation levels around the globe. As he said, the inflation can not be controlled in the very short term as the results are getting more visible as the time goes by. Nevertheless, Australia's inflation remains below the 2% RBA target since the mid-2014 and it is still stubbornly low. Stevens still has confidence the inflation will return to the level of 2% or even 3% in the medium term. In conclusion, the after the RBA had cut the rates to record low 1.75% level, despite prior concerns over the potential to further stimulate the housing market, the inflation is still lower than expected. Some economist are calling to cut the rates again in order to stimulate the Australian economy even more.

Let's now take a look at the AUD/USD technical picture in daily time frame. Bears have managed to push the prices towards the support at 61%Fibo at the level of 0.7212 and the price is currently testing this level. Moreover, the market is still trading below the 50, 100 and 200 moving average, so bears are in full control over this market. The next support is seen at the level of 0.7110.