AUD/USD hammered down mid-0.7300s, closer to over 2-week lows
| • Investors looked past today’s upbeat Aussie employment details.
• Resurgent USD demand triggers the initial leg of retracement slide.
• A slump in commodity space further aggravates the selling pressure.
The AUD/USD pair extended its sharp retracement slide and has now retreated around 90-pips from intraday tops, touched in the aftermath of stellar Aussie jobs data.
The pair once again failed to make it through the 0.7440 supply zone and the initial leg of retracement slide was triggered by resurgent US Dollar demand, which continued benefitting from upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report.
This coupled with the ongoing slump in the metal space weighed heavily on the commodity-linked Australian Dollar and further collaborated towards aggravating the selling pressure.
The latest leg of sharp fall over the past few hours could also be attributed to some technical selling, following a decisive break back below the 0.7400 handle. Hence, a follow-through weakness, back towards recent lows, now looks a distinct possibility.
Technical levels to watch
The 0.7340 area might continue to protect the immediate downside, which if broken might turn the pair vulnerable to slide towards challenging the 0.7300 round figure mark. On the flip side, the 0.7400 handle now becomes immediate hurdle and is followed by a strong resistance near the 0.7440 supply zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.