AUD/USD flirting with lows near 0.7700 handle

Haresh Menghani FXStreet

The AUD/USD pair extended previous session's retracement from yearly tops and is now flirting with the 0.7700 handle.

Spot came under some renewed selling pressure on Tuesday after the RBA minutes highlighted the central bank's concern on highly indebted households, while also raising alarm on build up of risks associated with the housing market.

RBA Minutes: Little labour cost pressure in the economy - ANZ

Also collaborating to the bearish sentiment surrounding the major was heavy selling pressure around copper prices, which was seen weighing on the commodity-linked currencies, including the Aussie.

Meanwhile, a subdued US Dollar price action did little to drive the pair's movement, albeit seems to have helped the pair to defend the 0.7700 handle, at least for the time being.

Later during the day, comments from the New York President William Dudley would be looked upon for some fresh impetus ahead of the US economic docket featuring the release of current account deficit.

Technical levels to watch

Weakness below the 0.7700 handle is likely to find support at 0.7675 horizontal level, which if broken is likely to accelerate the slide towards 50-day SMA support near 0.7610 region before the pair eventually drops to the very important 200-day SMA support near 0.7545-40 area.

On the upside, momentum above 0.7730 level is likely to confront resistance near mid-0.7700s, which if conquered sets the stage for continuation of the pair's near-term upward trajectory towards reclaiming the 0.7800 handle.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7722

50% Bullish
20% Bearish
30% Sideways

Bias Bullish

1 Month

Avg Forecast 0.7588

20% Bullish
65% Bearish
15% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.7503

10% Bullish
70% Bearish
20% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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