Aussie on defensive running in an oversold area

The Aussie is heading to record a seventh consecutive day of losses against the US dollar. The selloff was triggered following the RBA Governor Lowe announcement the interest rates are going to stay low for some extended period of time. A cut could be as soon as next week after the Fed's interest rate decision. A cut to 0.75 per cent by November is fully priced in. Inflation data are due on Wednesday with analysts expectations at 1.5% for the second quarter. Investors will eye PPI and Retail sales for the week ahead. RSI is running in an oversold area and maybe we could expect recovery following the Fed decision. Support is set on 0.6880.