AUD/USD tumbles to new 2020 lows near 0.6760
|- AUD/USD loses further the grip below 0.6800.
- Chinese coronavirus vs. economic impact hurt the mood.
- NAB Business Confidence, CPI due later this week.
The Aussie dollar is now under extra selling pressure and is dragging AUD/USD to fresh yearly lows in the 0.6760 region.
AUD/USD focused on China, data
The pair is down for the second session in a row at the beginning of the week, extending further the rejection from late December’s peak beyond 0.70 the figure.
The increasing weakness around AUD is linked to the potential impact of the Chinese coronavirus on the economy, while the persistent sell-off in crude oil prices also collaborates with the downbeat mood surrounding the currency.
Data wise in Australia, the Business Confidence gauge tracked by NAB is due on Tuesday followed by key inflation figures for the fourth quarter on Wednesday and Producer Prices on Friday.
What to look for around AUD
The Aussie dollar is challenging the area of 2-month lows in the 0.6760 region, down for the fifth consecutive session so far. The renewed and quite strong pick-up in the demand for the greenback in combination with developments from the Chinese virus have opened the door for further decline in the pair. On the not-so-dim side, recent auspicious results from the Australian docket appear to have removed some traction from speculations of an interest rate cut by the RBA at the February meeting, this acting as some contention amidst the prevailing bearish bias. Additionally, the currency is expected to remain under scrutiny while investors assess the effects on consumer confidence from the bushfires.
AUD/USD levels to watch
At the moment the pair is losing 0.83% at 0.6768 and faces the next support at 0.6754 (monthly low Nov.29) followed by 0.6723 (low Oct.16 2019) and then 0.6670 (monthly low Oct.2 2019). On the other hand, a breakout of 0.6840 (100-day SMA) would aim for 0.6878 (200-day SMA) and finally 0.6933 (high Jan.16).
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