AUD/USD Current price: 0.7488
The AUD/USD pair fell to its lowest since early January, this past week, settling at 0.7488 after touching 0.7440. The Aussie fell sharply last Wednesday, following the release of soft local inflation figures for the first quarter of the year, which indicated that the RBA will likely remain on hold for longer. Encouraging PPI readings released later on the week, were not enough to trigger demand for the commodity-related currency, weighed by Central Banks' imbalances and a limited recovery in base metals during the last few days. At the beginning of the week, China will release its PMI figures, with softer-than-expected figures most likely weighing on the pair. The RBA will meet next Tuesday, while the Fed will do so on Wednesday, setting the tone for the pair into the second half of the week. From a technical point of view, the pair is biased lower, given that in the daily chart, the pair is developing below a bearish 20 DMA, currently around 0.7520, whilst technical indicators lack directional strength, but hold within bearish territory. In the 4 hours chart, the price is hovering around a strongly bearish 20 SMA, while technical indicators have recovered from oversold readings, with the Momentum now aiming higher within neutral territory, and the RSI indicator flat around 46.
Support levels: 0.7440 0.7400 0.7365
Resistance levels: 0.7500 0.7535 0.7570
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