AUD/USD sinks below 0.75 as the rebounding USD chews through major support

The Aussie has tumbled all the way out of the descending channel as the Greenback surges on a US data beat.
The week is set to end on a bearish note for the Aussie.

Joshua Gibson FXStreet

The AUD/USD is trading back underneath the 0.7500 handle after tumbling in Thursday's US session.

The Greenback rebounded across the broader market yesterday, spurred on by better-than-expected Retail Sales figures, with the month of May excluding autos coming in at 0.9%, nearly doubling the forecast 0.5% and clearing the previous reading of 0.4% with ease.

The Aussie has found itself on weaker footing heading into the week's end after early Thursday saw a rash of data for both Australia and China missed expectations. The Reserve Bank of Australia's (RBA) Assistant Governor Ellis is expected to speak today, but Ellis' words are unlikely to have much impact, and the RBA is expected to continue towing the line of wait-and-see.

AUD/USD levels to watch

With the Aussie pairing falling below the key 0.7500 support level, further downside is looking likely as the AUD/USD has accelerated right out of the lower bound of the ongoing bearish channel, and has invalidated the last higher low from 0.7475; continued selling is likely into the pair's technical bottom at the major technical bottom at 0.7400, but the pair is looking set for a breath pullback into support-turned-resistance at 0.7515.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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