AUD/USD tumbles to three-week lows near 0.6600

The Aussie is under pressure after the release of Australian inflation data.
The US Dollar is gaining momentum ahead of central bankers' panel.
The AUD/USD is approaching the 0.6600 support level, falling sharply for the second day in a row.

Matías Salord FXStreet

After a brief consideration around 0.6640, the AUD/USD resumed its decline and tumbled towards 0.6600, reaching fresh weekly lows. The pair was trading lower following Australian inflation data and more recently, due to the stronger US Dollar across the board during the weekend.

First Australian inflation, then a stronger Dollar

Inflation data from Australia came in below expectations, with the Monthly Consumer Price Index annual rate decelerating to 5.6% in May, below the market consensus of 6.1%. The Trimmed CPI also decelerated to 6.1% in May from 6.7% in April. These numbers weighed on rate hike expectations from the Reserve Bank of Australia next week and sent the Aussie down across the board.
The AUD/USD dropped to 0.6619 during the Asian session and then rebounded modestly. After moving around 0.6640, the pair recently broke to the downside due to a stronger US Dollar across the board, tumbling to 0.6603, the lowest level in three weeks. It remains under pressure trading near the lows.

Market participants are now awaiting a European Central Bank (ECB) panel at the Sintra Forum with the participation of Bank of England's Bailey, Bank of Japan's Ueda, ECB's Lagarde, and Fed's Powell. Hawkish expectations from the Fed and the ECB have been benefiting the USD and the EUR during the last sessions. EUR/AUD is up on Wednesday for the eighth consecutive day and is trading above 1.6500, the highest since early May.

Looking at 0.6600

The pair is moving with a clear bearish bias, looking for the next support area. If it breaks below 0.6600, the next support might be seen at the 0.6580 area, followed by 0.6550. On the upside, 0.6635 is the immediate resistance, followed by 0.6665.

Technical levels

AUD/USD

Overview
Today last price	0.6609
Today Daily Change	-0.0077
Today Daily Change %	-1.15
Today daily open	0.6686

Trends
Daily SMA20	0.6719
Daily SMA50	0.6679
Daily SMA100	0.6709
Daily SMA200	0.6692

Levels
Previous Daily High	0.6721
Previous Daily Low	0.667
Previous Weekly High	0.6886
Previous Weekly Low	0.6663
Previous Monthly High	0.6818
Previous Monthly Low	0.6458
Daily Fibonacci 38.2%	0.6701
Daily Fibonacci 61.8%	0.669
Daily Pivot Point S1	0.6664
Daily Pivot Point S2	0.6642
Daily Pivot Point S3	0.6613
Daily Pivot Point R1	0.6715
Daily Pivot Point R2	0.6743
Daily Pivot Point R3	0.6766

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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