“¢ A fresh wave of global risk aversion trade prompts some aggressive selling.
“¢ Fresh weakness in Chinese Yuan/copper prices exerts additional pressure.
“¢ Today’s advance US Q3 GDP growth figures eyed for some fresh impetus.
The AUD/USD pair maintained its heavily offered tone through the early European session and remains within striking distance of over 32-month lows touched earlier today.
The pair came under some intense selling pressure on Friday and failed to capitalize on a subdued US Dollar price action, consolidating overnight upsurge to over two-month tops.
A fresh wave of global risk-aversion trade, triggered by a sudden fall in the Chinese Yuan, was seen as one of the key factors weighing heavily on perceived riskier currencies – like the Aussie.
This coupled with a weaker tone around copper prices exerted some additional downward pressure on the commodity-linked Australian Dollar and further collaborated to the pair’s downfall.
In the process, the pair took along some short-term trading stops near the 0.7050-40 region and tumbled to an intraday low level of 0.7023, the lowest since February 2016.
Moving ahead, today’s US economic docket, highlighting the release of advance US Q3 GDP growth figures, will now be looked upon to grab some meaningful trading opportunities on the last trading day of the week.
Technical levels to watch
A follow-through selling pressure has the potential to continue dragging the pair further towards the key 0.70 psychological mark, which if broken should open the room for an extension of the well-established bearish trend.
On the flip side, any attempted recovery move might now confront fresh supply near mid-0.7000s, above which the pair is likely to make a fresh attempt to surpass the 0.7075-80 supply zone and reclaim the 0.7100 handle.
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