AUD/USD analysis: back below 0.7500, but a bearish extension not yet clear

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7472

Australian Q1 wages' inflation and consumer confidence up next.
AUD/USD needs to break the daily low to retest 0.7411.

The AUD/USD pair saw a discrete decline when compared to its European rivals, as it held well above the yearly low set last week at 0.7411, still bearish daily basis and poised to extend its decline. The day started with the release of RBA Meeting's Minutes, which showed that policymakers are still fairly dovish on the monetary policy outlook, reaffirming what the market already knew that interest rate will remain at record lows in the foreseeable future. Data coming from China was overall AUD negative, as it suggests some slowdown in economic growth with Retail Sales up in March 9.4%, down from previous 10.1%, and investment also growing but less-than-expected in the same month. Adding fuel to the fire, gold plunged by over $10.00 a troy ounce below the 1,300.00 mark, while equities were also down for the day. Australia will release Q1 wages inflation and the Westpac Consumer Confidence Index for May during the upcoming Asian session which could add to the negative tone of the commodity-linked currency. From a technical point of view, the 4 hours chart favors additional slides ahead, as the pair extended well below its 20 and 100 SMA, both converging around 0.7530, while technical indicators pared their declines but hold near oversold readings. The pair bottomed for the day at 0.7447 with a break below the level favoring a retest of the yearly low set last week at 0.7411.

Support levels: 0.7500 0.7470 0.7435

Resistance levels: 0.7565 0.7610 0.7650

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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