AUD/USD analysis: closer to 0.7040, the year low

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7084

Aussie lower despite positive local news, following Wall Street's lead.
RBA's Assist Gov. Debelle is set to speak in two different events.

The AUD/USD pair fell to its lowest since October 11th against the greenback, settling below the 0.7100 level for the first time since that day. The Australian currency fell despite the Conference Board Leading Economic Index® increased 0.2% in August 2018 to 105.7, after advancing 0.1% in the previous month. Soaring Asian equities did little for the Aussie, as the Yuan eased, dragging the AUD alongside. This Tuesday, the country won't release any relevant data, although RBA's Assist Gov. Debelle is set to speak in two different events, with the second one being the most relevant, as he will participate in a panel discussion titled "FX market changes and the potential impact on correspondent banking" in Sydney, and may refer to monetary policy.

The pair broke below the 23.6% retracement of its October's decline on the back of Wall Street's weakness, entering the Asian session a few pips below the level and with a short-term technical stance according to intraday technical readings. In the 4 hours chart, the pair was unable to advance above its 20 and 100 SMA, both heading lower around the 38.2% retracement of the same decline at around 0.7110, as technical indicators hold near daily lows, the RSI still heading south and the Momentum directionless. The key support from here is 0.7040, the yearly low, with a break below it opening doors for a continued decline toward the 0.6820 price zone.

Support levels: 0.7040 0.7000 0.6960

Resistance levels: 0.7110 0.7145 0.7170

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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