AUD/USD down to test 0.7700 on RBA minutes, copper sell-off

Dhwani Mehta FXStreet

The AUD/USD pair stalled its overnight bullish consolidation phase and broke sharply to the downside, following the release of RBA minutes, with the bears now attacking 0.77 handle.

The major met fresh supply after the RBA minutes highlighted threats in property market, as well as warned over an acceleration of domestic household debt, while maintaining that a rising AUD would complicate economic transition.

Adding to the latest leg lower, copper prices on COMEX witnessed heavy selling over the last hours, and weighed negatively on the resource-linked AUD. Copper plunged on hopes BHP Billiton would hold further talks that could lead to the restart of output at the world's biggest copper mine.

Markets now look forward to the Fedspeaks and US economic data due later in the NA session for fresh impetus. In the meantime, the spot will take cues from the risk trends.

AUD/USD Levels to watch

At 0.7702, the pair finds the immediate support located at 0.7680 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7651/50 (Mar 15 low/ psychological mark) and below that 0.7611/00 (200-DMA/ zero figure). On the flip side, the immediate resistance at 0.7748/50 (multi-week tops/ psychological levels) above which gains could be extended to the next hurdle located 0.7780 (Nov tops) and 0.7800 (zero figure).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bearish	Neutral	Expanding
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	High
1W	Bullish	Neutral	Expanding
Updated Mar 21, 01:00 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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