AUD/USD tumbles below 0.7200 ahead of Yellen

Pablo Piovano FXStreet

The increasing bid tone in the greenback continues to hurt the risk-associated space, with AUD/USD quickly breaking below the 0.7200 key support.

AUD/USD attention to 0.7150

The selling pressure around the Aussie dollar has accelerated following the US data releases today and ahead of the speech by Chief J.Yellen, prompting the pair to once again breach the critical support at 0.7200 and open the door for a re-visit to earlier 2-month lows in the mid-0.7100s (Tuesday).

In the meantime, spot keeps the lower bound of the recent range, losing ground almost uninterruptedly since the recent RBA 25 bp rate cut and with gains so far capped in the vicinity of the key 200-day sma around 0.7250.

AUD/USD levels to watch

At the moment the pair is down 0.51% at 0.7189 and a breakdown of 0.7142 (low May 24) would open the door to 0.7105 (low Feb.29) and then 0.7063 (23.6% Fibo of the Jan-Apr up move). On the other hand, the next up barrier lines up at 0.7254 (200-day sma) followed by 0.7320 (high May 11) and finally 0.7403 (high May 11).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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