AUD/USD tracks commodities lower, eyes 0.7350
|- Aussie sold-off into weaker commodities’ prices and USD rebound.
- Australian and Chinese data failed to keep the bears at bay.
The AUD/USD pair is seen accelerating its retreat from three-day highs at 0.7424, as the bears fought back control amid a broadly firmer US dollar and commodities’ sell-off.
AUD/USD: Light trading to extend on US holiday
The ongoing corrective rally in the Aussie lost legs once again near 0.7420 region, as the USD bulls jumped back on the bids, with markets preferring to hold the US currency amid escalating trade war tensions and ahead of Thursday’s FOMC June meeting minutes.
The latest leg down in the major can be also attributed the renewed weakness in oil and copper prices, which dents the sentiment around the resource-linked AUD. At the time of writing, AUD/USD flirts with daily lows near 0.7480 region, down -0.05% on the day.
Earlier today, the Aussie rallied to regain the 0.74 handle following the releases of upbeat Australian retail sales and Chinese services PMI data. Also, a firmer Yuan versus its US counterpart helped the upside in the OZ currency.
AUD/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet, “technically, the pair presents a neutral stance, having been rejected from a bearish 100 SMA and now a handful of pips above a directionless 20 SMA, while the Momentum indicator continues hovering around its 100 level and the RSI turned south, currently at 52. The risk of a downward continuation will increase on a break below 0.7345, while only beyond 0.7440 bulls will take the lead. Support levels: 0.7345 0.7310 0.7275. Resistance levels: 0.7410 0.7440 0.7480.”
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