- USD strength dominates FX markets on Monday.
- AUD/USD falls to fresh weekly low below 0.72.
- Trading action is likely to stay subdued in the second half of the day.
The AUD/USD, which erased the majority of its weekly gains on Thursday and Friday, started the week under pressure and dropped to its lowest level in a week at 0.7185 on Monday. With the trading volume thinning out amid the Veterans Day holiday in the U.S., the pair staged a technical correction and was last seen moving sideways a little above the 0.72 handle, where it was still down 0.25% on a daily basis.
Earlier today, the selling pressure witnessed on the euro and the British pound ramped up the demand for the greenback and the US Dollar Index rose to its highest level of the year at 97.58 to weigh on the pair. At the moment, the index is up 0.45% on the day at 97.35.
On the other hand, a recovery seen in commodities led by crude oil’s strong rebound on Monday helps commodity-sensitive currencies such as the CAD and the AUD show some resilience against the greenback.
During the Asian session on Tuesday, the National Bank of Australia is going to publish its Business Sentiment report.
Technical levels to consider
0.7200 (psychological level) aligns as the first technical support for the pair ahead of 0.7160 (50-DMA/20-DMA) and 0.7090 (Oct. 18 low). On the upside, resistances are located at 0.7230 (100-DMA), 0.7270 (Nov. 9 high) and 0.7300 (Nov. 8/Nov. 7 high).
Share
