AUD/USD heads for lowest close in a year

AUD among worst performers on Monday, hits fresh 1-month lows against US Dollar.
AUD/NZD drops under 1.0700 for the first time in 5 weeks.

Matías Salord FXStreet

The AUD/USD pair resumed the decline during the American session and dropped to 0.7412, reaching the lowest level since May 9. Near the end of the session, it was hovering around the lows, headed toward the third daily loss in-a-row and to the lowest close in a year.

Last Friday, AUD/USD broke below the 0.7450 area and today extended the decline, holding below the mentioned key level. It opened the doors more losses with a test of the 0.7400 likely on the next sessions.

The weaker Aussie also was reflected on the AUD/NZD. The pair dropped below 1.0700 for the first time in a month as it continues to correct lower after being unable to break above 1.1000 last month.

On Tuesday, in Australia, the minutes of the last RBA meeting will be released while in the US, housing data is due (building permits and housing starts).

AUD/USD Technical levels

To the downside, support level might be located at 0.7405, 0.7385 and 0.7370. On the upside, resistance could be seen at 0.7450 (Jun 18 high), 0.7485 and 0.7520.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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