“¢ Resurgent USD demand prompts some fresh weakness on Tuesday.
“¢ Sharp fall in copper prices adds to the selling bias around Aussie.
“¢ Tumbling US bond yields do little to provide any immediate respite.
The AUD/USD pair remained under some selling pressure through the early European session and has now dropped to over one-week lows, around the 0.7515 region.
The pair extended overnight retracement from an intraday high level of 0.7581, with resurgent US Dollar demand exerting some additional downward pressure on Tuesday.
This coupled with the latest leg of sharp fall in copper prices further weighed on the commodity-linked Australian Dollar and collaborated to the pair’s slide over the past couple of hour.
Meanwhile, the ongoing slump in the US Treasury bond yields was primarily led by a fresh wave of global risk-aversion trade and hence, did little to lend any support to higher-yielding currencies – like the Aussie.
It would now be interesting to see if the pair is able to find support near the key 0.7500 psychological mark or last week’s rejection slide from the 0.7600 handle marks the end of near-term corrective bounce and resumption of the prior depreciating fall.
Today’s relatively thin US economic docket, featuring the release of Conference Board’s consumer confidence index would now be looked upon for some fresh impetus later during the early NA session.
Technical levels to watch
A decisive break through the 0.7500 handle is likely to accelerate the slide towards 0.7475-70 support area, below which the pair is likely to aim back towards retesting multi-month lows around the 0.7415 region.
On the upside, 0.7545-50 area now seems to have emerged as an immediate resistance, which if cleared could assist the pair to move back towards 0.7580 intermediate resistance before aiming to reclaim the 0.7600 handle.
Share
