AUD/USD tumbles to weekly lows near 0.7160 on stronger USD

The pair’s leg lower intensifies below the 0.7200 handle.
The buying bias in the greenback is weighing on spot.
US Retail Sales, Beige Book next of relevance in the docket.

Pablo Piovano FXStreet

The improved tone around the greenback is weighing on the riskier assets today and is now dragging AUD/USD to fresh multi-day lows in the 0.7160 region.

AUD/USD next support appears at 0.7154, 10-day SMA

The pair has come under renewed downside pressure on Wednesday, dropping and clinching fresh weekly lows in the 0.7160 zone on the back of firmer demand in the greenback.

In fact, gauged by the US Dollar Index (DXY), the buck is approaching weekly tops in the 96.20 region sustained by rising yields in the US money markets.

In the data space, US Retail Sales and the Beige Book will grab all the attention in the NA session, whereas Consumer Sentiment measured by Westpac and November’s Home Loans are due tomorrow Down Under.

What to look for around AUD

The US-China trade dispute would remain as a key driver for the Aussie Dollar in the near to medium term, as China is the main destination of Australian exports. In addition, the USD-dynamics and its impact on the commodity-bloc stays as the omnipresent catalyst of the price action. Furthermore, the neutral stance of the RBA is expected to persist this year, removing at the same time any potential influence on the currency via changes in monetary conditions.

AUD/USD levels to watch

At the moment the pair is losing 0.38% at 0.7173 and a breakdown of 0.7154 (10-day SMA) would open the door to 0.7112 (21-day SMA) and finally 0.7021 (monthly low Oct.26 2018). On the other hand, the next resistance aligns at 0.7234 (2019 high Jan.11) seconded by 0.7302 (high Nov.8 2018) and then 0.7327 (200-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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