AUD/USD flat around 0.7700, still under pressure

The AUD/USD pair bottomed earlier today at 0.7685, the lowest since December 21. Then rose back to the 0.7700 area, where it has been trading during the last hours. 

The aussie is among the worst performers on Monday. It has been unable to benefit from a slide of the US dollar, probably weakened by technical reasons and also amid risk aversion. The DXY dropped to 89.35, the lowest since last Thursday while equity prices in the US were falling more than 1%. Also sentiment around commodities affected the aussie, particularly copper, down 1% on Monday. 

AUD/USD Levels to watch 

The pair so far avoided a sharp slide below 0.7700 but still remains under pressure.  “The solid support zone highlighted at 0.7715/25 is being tested sooner than expected and a clear break of this level would indicate that the month-long neutral phase has ended and a move towards 0.7630 has started. This appears to be a likely scenario unless AUD can move and stay above 0.7770 within these few days”, wrote UOB analysts. 

In the short-term, a recovery back above the relevant technical level at 0.7750/60 would ease the bearish pressure. 

Key events ahead 

The key event over the next days in the US week will be the Federal Reserve meeting (March 20-21). A rate hike is expected and updated economic projections from FOMC members will be released. In Australia tomorrow RBA minutes will be published and the jobs report is due on Thursday. 

The G20 meeting is taking place in Buenos Aires and the US protectionist measures are likely to be a topic. 

Also, the RBNZ meeting on Wednesday could influence on the Aussie if it surprises with changes in the statement.