AUD/USD slides below 0.7300 mark for the first time since November 2020


  • AUD/USD continued losing ground for the fifth consecutive session on Wednesday.
  • COVID-19 jitters, disappointing Australian Retail Sales data weighed on the aussie.
  • Sustained USD buying interest also contributed to the ongoing downward trajectory.

The AUD/USD pair dropped to fresh multi-month lows heading into the European session, with bears now looking to extend the downward trajectory further below the 0.7300 mark.

The pair prolonged its recent bearish trend and witnessed some follow-through selling for the fifth consecutive session on Wednesday. The extended lockdowns in Australia’s two most populous states of Sydney and Victoria continued acting as a headwind for the aussie, which was further pressured by disappointing macro data.

In fact, preliminary figures from the Australian Bureau of Statistics (ABS) showed that retail turnover in June fell 1.8% from a month earlier. This marked the biggest drop in 2021 and further fueled worries about the potential economic fallout from the spread of the highly contagious Delta variant of the coronavirus.

The data further cast a shadow over the outlook for growth in the third quarter amid the continuous rise in COVID-19 cases and overshadowed a generally positive tone around the equity markets. Apart from this, sustained US dollar buying further contributed to the AUD/USD pair's decline to the lowest level since November 2020.

Growing market fears about fresh COVID-19 outbreaks continued underpinning demand for the safe-haven greenback and drove flows away from the perceived riskier aussie. In fact, the key USD Index stood tall near three-and-half-month tops and for now, seemed rather unaffected by a fresh leg down in the US Treasury bond yields.

In the absence of any major market-moving economic releases from the US, developments surrounding the coronavirus saga will play a key role in influencing the USD price dynamics. Traders might further take cues from the broader market risk sentiment in order to grab some short-term opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7295
Today Daily Change -0.0035
Today Daily Change % -0.48
Today daily open 0.733
 
Trends
Daily SMA20 0.7483
Daily SMA50 0.7616
Daily SMA100 0.7664
Daily SMA200 0.7588
 
Levels
Previous Daily High 0.7357
Previous Daily Low 0.7299
Previous Weekly High 0.7504
Previous Weekly Low 0.7391
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7321
Daily Fibonacci 61.8% 0.7335
Daily Pivot Point S1 0.73
Daily Pivot Point S2 0.727
Daily Pivot Point S3 0.7242
Daily Pivot Point R1 0.7358
Daily Pivot Point R2 0.7387
Daily Pivot Point R3 0.7417

 

 

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